By Staff Reporter
The Congress of SA Trade Unions wants government to act swiftly to stave off a pending July fuel price hike, following international oil prices skyrocketing by 10% over the past week.
This is likely to see an increase in petrol prices across the world and be a “painful blow” to millions of South African workers and commuters already struggling to cope with the rising costs of living, warned Cosatu parliamentary coordinator Matthew Parks.
He said that while there was not much the government could do to prevent rising oil prices beyond intensifying international solidarity campaigns, it was imperative that it implemented urgent measures to help cushion workers and the economy.
Key interventions needed to include reviewing and lowering the taxes and levies consuming a third of the fuel price and putting measures in place to address the chaos and maladministration at the Road Accident Fund to lessen its dependency on the fuel levy.
Cosatu wants additional measures to return Transnet to full productive capacity to help shield food from inflation and investments in Metro Rail to be speeded up to return all lines to full capacity.
Other interventions should include adjusting the SRD Grant for value lost to inflationary erosion and increasing the allocations of free electricity and water to indigent households.
“It is critical that government move with speed and be proactive. South Africa cannot afford to be found wanting with yet another global conflict spiking international oil and thus the domestic fuel price regimes,” Parks said in a statement.
“The South African Reserve Bank will need to resist its default trigger finger lest it be tempted to add further pain to workers by increasing the repo rate. With inflation at 2.8% and far below the inflation target range, there is ample space for further rate cuts and zero need for any hikes.”
Cosatu will continue to engage with the Presidency, Treasury and Transport Department on cushioning the working class and economy from any potential blows due to the wars in the Middle East.
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