South Africa: Cosatu Is Calling On the Government to Come Up With a Serious Plan to Address the Country's Fuel Price Crisis

press release

It is becoming blatantly clear that our inept government does not have a solid plan to lessen the impact of these fuel hikes on consumers. We are calling on the government to release the promised research on the possible fuel price cap. The government promised a review of the fuel price structure in November 2018. Since that promised review, the public has heard nothing from the state. In the meantime, the fuel price has been increased three times with another massive increase predicted for May.

Currently, 38% of the fuel price goes to taxes that are being wasted and looted with impunity. It is puzzling that fuel is now far cheaper in neighbouring states even though their fuel is imported through South African ports! These price hikes represent a regressive anti-poor tax. While all income groups are treated equally, it is, in fact, the poor who are the hardest hit. They have to bear the brunt of not only higher transport costs to get to work and send their children to school but also have to bear the burden of higher food prices and other essential goods. This is in contrast to income tax, where the more a person earns, the higher their income tax rate is.

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