SAFTU concerned at effect of latest fuel price increase on the poor
4 July 2018
The South African Federation of Trade Unions is deeply concerned at the effect that today’s increase in the price of petrol and paraffin will have on the living standards of workers. It will inevitably lead to further increases in the price of other goods and services, and yet again the poorest will suffer most’
The lowest earners will be hardest hit, as they spend a larger than average portion of their income on transport and on food. Both will become more expensive, as bus and taxi operators raise their fares and retailers increase prices to pass on to consumers the increased cost of transporting goods from farms and factories.
80% of grain is transported by road, so the increase is bound to lead to rises in the cost of many basic foods. Farmers will also have to pay more for fertilisers, pesticides and herbicides needed for crop farming.
What makes this increase even more alarming is that it comes just as the knock-on effects of last month’s fuel price increase are being felt, and that another increase is predicted for August.