JOHANNESBURG - South African motorists are facing a major blow at the pumps, with fuel prices set to surge sharply on Wednesday.
Petrol goes up by R3.27 per litre, while diesel sees an even steeper jump of over R6 per litre.
The spike is being driven by higher global oil prices and a weaker rand, alongside adjustments to the levy.
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Although government has extended fuel tax relief to cushion the impact, Cosatu and analysts warn that the increases will still hit consumers
Cosatu’s parliamentary co-ordinator, Matthew Parks, painted a grim picture as he described the situation as a setback
"It's the worst possible news. And it's quite depressing because we've begun to slowly make some progress in reducing unemployment in the last few years from 46% to 41%. Managing to get growth we had hoped to 1.4% after being stuck for so long at 1% and less," Parks said.
While he welcomed the extension of fuel tax relief, Parks cautioned against any immediate plans to phase it out.
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He said discussions around phasing it out should take place once global oil prices and local fuel costs begin to stabilise and return to pre-war levels.
This is as he warned that removing the relief too soon would place pressure on workers, businesses, and the broader economy.
“Hopefully the war will end soon, and we'll see prices begin to fall soon. But right now, despite the on-off negotiations between the US and Iran, we're not seeing any progress. They're still sky high,” Parks said.