Fuel prices hit record high at midnight as Cosatu demands R10bn relief
The union federation wants Parliament to fast-track a special appropriation bill for the Central Energy Fund, warning that Treasury and the mineral resources department have rejected its calls for relief.
Fuel prices rise to record levels from midnight, and Cosatu is demanding that the government intervene before the increase pushes up the cost of living, inflation and possibly interest rates.
The federation wants Parliament to fast-track the R10 billion second special appropriation bill currently before the House, according to eNCA (YouTube). The money is allocated to the Central Energy Fund and specifically to its equalisation fund, which is meant to cushion South Africans from international oil price shocks.
Cosatu argues that acting now would protect households from the full impact of the increase, keep money circulating in the economy, support economic growth and help create jobs. It says intervention could also tame inflation and avoid another interest rate hike by the Reserve Bank in November.
The federation says Treasury and the Department of Mineral and Petroleum Resources have not accepted its proposals and have decided not to provide relief.
Cosatu warns that without action, inflation will rise again in October, economic growth will slow, unemployment will tick up, and the Reserve Bank may be tempted to raise the repo rate in November. It says the pressure on society is already too great.
Source: eNCA (YouTube), COSATU urges govt action as fuel price shock hits, https://www.youtube.com/watch?v=vbs7JcPt2-4
