Cosatu calls for fuel levy relief as transport costs rise

Cosatu has called on the government to reintroduce fuel levy relief, arguing that higher petrol and diesel prices are adding pressure to workers and the wider economy.

The labour federation’s spokesperson, Zanele Sabela, told eNCA that the temporary relief used previously had helped to cushion households and economic activity. Cosatu wants a similar intervention considered as transport costs rise.

The federation’s call is a policy proposal, not a government decision. Any change to the fuel levies would have to be announced by the national government and implemented through the relevant tax and fuel-price mechanisms.

South Africa’s regulated fuel prices are affected by international oil and petroleum-product prices, the rand-dollar exchange rate, transport and storage costs, margins and taxes. The general fuel levy and Road Accident Fund levy form part of the pump price.

Cosatu argues that fuel increases spread quickly through the economy because many workers rely on public or private transport and businesses pay more to move goods. Those costs can feed into fares, food distribution and other household expenses.

The government has previously used a temporary reduction in the general fuel levy as a short-term response to sharp price pressure. Such relief also reduces revenue while it remains in force, leaving the Treasury to weigh household support against the public finances.

No new fuel levy reduction had been announced in the official information reviewed by EBNewsDaily on Sunday morning. Cosatu’s proposal will now add to pressure on the government to explain whether further relief is being considered.