Trade union federation Congress of South African Trade Unions (COSATU) has called on SA government to introduce additional interventions to cushion the economy from the potential fallout of escalating hostilities in the Middle East.
The call follows mid-April data released by the Central Energy Fund, which warns of significant fuel price increases expected in May.
According to the data, petrol prices could rise by more than $0.18 (R3) per litre for both grades, while diesel could increase by nearly $0.61 (R10) per litre and illuminating paraffin by about $0.43 (R7).
The Central Energy Fund attributes the anticipated hikes to rising international crude oil prices and a weaker Rand, developments that could place further pressure on households, transport costs and the broader economy.
COSATU says if the fund’s mid-April data was to materialise, its would deal another blow to SA’s fragile economy, which is currently growing at around 1%.
The warning follows government’s decision late last month to temporarily reduce the fuel levy by $0.18 per litre, just hours before fuel prices were adjusted upwards nationwide.
Treasury’s adjustment was preceded by the Central Energy Fund’s data for the month of April.
–SABC–
