JOHANNESBURG - Motorists are bracing for record fuel prices, with steep increases taking effect from midnight and adding further pressure to already stretched household budgets.
The Congress of South African Trade Unions (Cosatu) is calling on government to fast-track the Second Special Appropriation Bill, which would provide R10-billion to the Central Energy Fund’s Equalisation Fund.
Cosatu says the funding could help cushion consumers against international oil price shocks and limit the impact of the latest fuel price increases.
Cosatu Parliamentary Coordinator Matthew Parks says intervening now could help protect households while supporting the wider economy.
The benefit of intervening now would be to cushion society from these excessive fuel price hikes. It would be to help save money to spend in the economy, to help stimulate economic growth, hopefully to help create jobs as well.”
Parks says the intervention could also help contain inflation and reduce the risk of another interest rate increase by the South African Reserve Bank.
“If you could intervene now, it could help to tame inflation as well. And that will avoid another repo rate hike by the Reserve Bank in November. And that’ll be also critical.”
The call comes as consumers face sharp increases across all major fuel grades.
From midnight, 93 unleaded petrol will rise by R3.12 a litre, while 95 unleaded petrol will increase by R3.33 a litre.
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Diesel prices will also surge, increasing by either R2.84 or R3.24 a litre, depending on the grade.
Households that rely on illuminating paraffin will also feel the pinch, with the wholesale price increasing by R3.58 a litre.
The increases are being driven largely by higher international oil and petroleum product prices amid the ongoing conflict in the Gulf.
With transport, food and other everyday costs closely linked to fuel prices, Cosatu warns that the latest increases could place further strain on consumers and businesses.