Trade federation Cosatu has called on the government to “act decisively” and intervene on behalf of workers and poor households.
This, as the petrol price for 93 and 95 unleaded will be hiked by R1.71 a litre on Wednesday, while the wholesale price of diesel will be increased by R2.84 a litre, and illuminating paraffin will increase by R2.78 a litre.
Cosatu said the increases drained the purchasing power of most South Africans.
“Poor households are already struggling to survive under these difficult conditions and an increase in the price of paraffin will leave many poor families worse off.
“This increase in fuel prices will create a level of hardship for a society that is already suffering from high levels of unemployment and stagnant or declining real wages,” said Cosatu acting national spokesperson Matthew Parks.
He said low- and middle-income families were going to be plunged further into debt because their wages did not cover even basic amenities.
“The National Credit Regulator’s reports confirm workers are drowning in debt,” said Parks.
The federation called for the government to adjust social grants in the Medium Term Budget Policy Statement, in particular the Social Relief of Distress Grant, in response to the impact of higher prices.
It further advised that government provide relief to commuters and the economy by lowering our fuel taxes.
The Fuel Retail Association said the government should be looking at more inclusive ways dealing with these price increases.
According to the Department of Energy, the forthcoming increases were attributed to a combination of current local and international factors.
Cape Times