The Congress of South African Trade Unions (COSATU) is calling for stronger government intervention to protect the economy from expected fallout linked to the ongoing Middle Eastern conflict.
The federation says recent projections from the Central Energy Fund indicate steep fuel price increases next month, including potential hikes of over R3 per litre for petrol, R10 for diesel, and R7 for paraffin.
COSATU spokesperson Matthew Parks said the developments pose a serious threat to an already struggling economy, which has recorded around 1% growth over the past decade.
“Government’s one-month 3 rand a litre fuel levy cut is a positive first step, but much more relief is urgently needed,” Parks said.
He warned that rising fuel costs would have widespread consequences for households and key sectors of the economy.
“While suppressing this effort to cushion society from the international oil price spike, we fear that workers, society, and the economy will not cope with massive petrol, diesel, and paraffin hikes. Diesel is critical for public transport that workers depend upon,” he said.
COSATU has urged government to consider additional measures to cushion consumers and prevent further economic strain as global instability continues to impact fuel markets.
VOC News
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