Saturday Star News

Civil society, unions warn fuel hikes will deepen cost-of-living crisis

Anita Nkonki|Published

A wave of concern is growing among civil society organisations, trade unions and political parties following the latest fuel price increase set to take effect on 6 May, with warnings that the hikes will intensify financial pressure on already strained households.

Trade union federation UASA says the increase reflects how vulnerable the local economy remains to global shocks, pointing to rising international oil prices driven by geopolitical instability.

UASA spokesperson Abigail Moyo warned that international conflict continues to play a major role in local fuel pricing.

“Sadly, April saw a continuation of the United States’ war in Iran, which drove massive fluctuations in the global oil price, pushing oil prices to above $100 a barrel,” the union said.

“This situation once again highlights the extent to which international developments can negatively affect domestic economic conditions, particularly affecting the disadvantaged.”

UASA says the impact will be felt immediately by consumers at the pumps, warning that higher fuel prices will cascade through the economy.

“These increases will have far-reaching consequences for the cost of living. Rising fuel prices inevitably lead to higher transportation and production costs, which businesses often pass on to consumers through increased prices for goods and services,” the union said.

“This creates a persistent financial burden that households will take considerable time to recover from.”

The union has also called on employers to respond with practical relief measures.

“Employers, where feasible, are encouraged to consider flexible work arrangements, including remote work options, to assist employees in managing escalating transport costs,” it said.

COSATU has echoed similar concerns, saying workers are being squeezed by repeated fuel adjustments and limited relief measures.

Political pressure has also intensified, with the EFF accusing government of failing to introduce long-term solutions to shield consumers from volatile fuel pricing.

The party argues that while Treasury has previously indicated plans for broader interventions, no concrete structural measures have been implemented. It says this reflects a government that is “disconnected from the lived realities of its people.”

The Department of Mineral and Petroleum Resources maintains that the increases are driven by global market conditions, including rising crude oil prices and geopolitical tensions, particularly in the Middle East.

Minister Gwede Mantashe said international developments continue to heavily influence local fuel pricing.

“The average Brent Crude oil price increased from 93.67 US Dollars (USD) to 101 USD during the period under review. This is due to the continued tension between the US and Iran, the closure of the Strait of Hormuz and damage to other crucial infrastructure which have affected crude oil supply,” the department said.

Despite a temporary fuel levy reduction introduced by government, organisations warn it is not enough to offset rising costs, with many calling for more permanent structural interventions to protect consumers from repeated price shocks.