This latest devastating fuel price hike will result in more job losses and a possible economic depression

3 October 2018  

The Congress of South African Trade Unions is deeply alarmed by yet another increase in the price of fuel and the impact it will have on the poor communities and small businesses.

Poor households, low income earners and small businesses are already struggling to survive under this difficult conditions.This increase in fuel prices will create unimaginable levels 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 this will plunge us in a recession.

Most SMME’s will struggle to survive and some might be forced to shut down at a time when we need many of them to thrive so as to help us create jobs and reduce unemployment. This country needs to help support the small business sector in this country if we are to resolve the legacy of concentration and domination of the South African economy by a few monopolies.

We hope that the Job Summit and the upcoming Investment Summit will come out with a deliberate effort to create more space for SA small firms to succeed and create jobs for the 9 million unemployed workers. Government should help reduce the costs of high administered prices like electricity, transport costs and address the non- availability of affordable finance.

We are also calling on our government to consider increasing subsidies for public transport and also work on investing in our public transport system. There is an urgent need to improve the quality and efficiency of our public transport, particularly in poorer communities and rural areas.

We are also angry at government's failure to clean up the Road Accident Fund that continues to wastes millions of rands on corruption. Our government must urgently copy China, Sweden, France and the UK and urgently invest and expand electric cars.This would help save consumers money, save the environment, boost the auto manufacturing sector and save Eskom by boosting demand for electricity.

Issued by Sizwe Pamla, National Spokesperson, COSATU, 3 October 2018