COSATU statement on the rise in the price of fuel and paraffin
2 June 2018
The Congress of South African Trade Unions is deeply alarmed by escalating price of fuel and the impact it will have on the poor communities. This spells bad news for all South Africans but the impact on poor families will be even worse.
Poor households are already struggling to survive under these difficult conditions and an increase in the price of paraffin will leave many poor families worse off. The chilling winter conditions will force many poor families to resort to dirty energy like coal and leaving them vulnerable to health hazards.
This increase in fuel prices will create a level of hardship for a group that is already suffering from high levels of unemployment and stagnant or declining real wages. Low- and moderate-income families are going to plunge further and further into debt because their wages are now inadequate to afford the basic amenities.
These higher fuel prices will also drain away the purchasing power of most South Africans and as a result this will retard the economic recovery and a slowing GDP will likely tip the economy into a recession.
This fuel hike will fuel CPI and further impoverish workers.