Fuel price increase puts pressure on workers’ wallets

5th July 2022

Fuel price increase puts pressure on workers’ wallets

Photo by: Bloomberg

Cash-strapped workers face yet another expense increase with the fuel price hike kicking in on Wednesday.

The fuel levy falls from R1,50 per litre to 75c before the total levy is brought back in August, while petrol prices will be hiked by R2.37 (93) and R2.57 (95) a litre, and diesel prices will rise by R2.31 (0.05% sulphur) and R2.30 (0.005% sulphur) a litre, the Department of Mineral Resources and Energy announced on Monday. Whilst paraffin prices will increase by R1.66 a litre, the maximum LP Gas retail price will fall by R2.18/kg.

At R26.74 a litre in Gauteng, 95 petrol will cost 54% more than a year ago.

UASA believes the fuel price increase calls for urgent intervention as it shows inflation spiralling out of control. Gauteng consumers will fork out more than R26 per litre, which paints an ugly picture regarding transport cost and the overall cost of living.

Since the beginning of the year, fuel prices have spiralled out of control. While UASA  constantly calls on government to intervene, we take note of the fuel levy relief in the past two months. However, what is needed is a permanent solution to this monthly crisis. We can’t keep pleading with government each month on the same challenge.

With fuel now well past the R25 margin, small businesses who depend on generators during load-shedding will struggle to keep their concerns afloat. How much more will they be forced to spend on fuel on top of the electricity tariff hikes?

The current situation is an economic disaster for cash-strapped workers who must match their disposable income with growing inflation rates and survive on the little they have left.

UASA encourages its members and all South Africans to remain strong and continue doing what they can based on what they have to survive. We trust that government will eventually do the right thing and find a sustainable solution to this crisis.

 

Issued by Abigail Moyo, spokesperson of the trade union UASA