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Fedusa calls for the immediate extension of the fuel levy subsidy

Fedusa said that it had noted with serious concern the plethora of reports by economists regarding the massive fuel price hikes anticipated next month.

Fedusa calls for an extension of the reduction in the general fuel levy. Picture: Ayanda Ndamane African News Agency (ANA)

Published May 18, 2022


DURBAN – A predicted massive fuel price increase in June has led the Federation of Unions of South Africa (Fedusa) to call for an extension in the reduction of the general fuel levy.

The levy was reduced by R1.50 for April and May by Finance Minister Enoch Godongwana.

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Fedusa said it noted with serious concern the plethora of reports by economists regarding the massive fuel price hikes anticipated for June.

“The federation strongly condemns yet another hike in prices of both grades of fuel and diesel of between R1.50 to R2 per litre.

“This rapid increase in fuel prices will consequently have a negative impact on the economy, especially the working class, who commute daily to their workplaces.

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“This is an unnecessary economic burden that workers and the country cannot afford in this current economic climate, as the country attempts to claw back to pre-pandemic levels.”

Fedusa said while it acknowledges the macroeconomic and external market forces which was impacting the fuel prices, further intervention was needed to avoid panic buying and the inflationary impact on food prices as well as food insecurity due to the Russia, Ukraine conflict.

“Paying lip service without solid political will and dedicated commitment by the government to resuscitate the country’s defunct and unreliable railway network, further compounds the matter, making the cost of transport even more unaffordable for workers and society at large.

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“The time for empty promises is over – the collapsed and unsafe railway and road networks must be fixed as a priority.”

Fedusa demanded the Minister of Finance immediately extends the emergency fuel levy intervention, which expires at month end, to cushion the blow to South African workers and businesses.


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Related Topics:

Fuel Prices