EPISODE · May 5, 2026 · 10 MIN
In Conversation With Matthew Parks (COSATU Parliamentary Coordinator)
from VOW 88.1 · host Pretty Ngwenya & KHANYISILE YENDE
South Africans are facing yet another economic strain following sharp increases in fuel prices, with petrol rising by over R3 per litre, diesel by R6, paraffin by R4, and gas by R5. These hikes come on top of April’s increases, compounding financial pressure on households and businesses already grappling with slow economic growth. The Congress of South African Trade Unions has raised alarm over the ripple effects these increases will have on workers, commuters, and the broader economy. With South Africa’s growth hovering at around 1%, the country remains vulnerable to global shocks—particularly those linked to oil supply disruptions and geopolitical tensions. Fuel costs are a critical driver of inflation. In South Africa, they directly affect transport costs, food prices, and overall cost of living. For many workers, transport alone consumes up to 40% of their wages, with some supporting extended households of up to seven people. Government has attempted to intervene by extending fuel levy relief—R3 per litre for petrol and R3.93 for diesel—for May and June. However, this relief is temporary, with plans to reduce it in June and phase it out entirely by July. COSATU warns that this approach may not be sustainable if global oil prices remain high. The federation is particularly concerned about the lack of relief for paraffin users—many of whom are low-income households relying on it for cooking and heating. The union has proposed a range of interventions, including: • Extending fuel levy relief for longer • Making public transport more affordable • Adjusting social grants, including the SRD grant, in line with inflation • Providing food parcels to vulnerable households • Stabilising electricity costs through engagement with Eskom • Avoiding further interest rate hikes by the South African Reserve Bank COSATU also calls on the private sector to play a role—through halting retrenchments and offering financial relief such as loan repayment holidays. Instagram · Twitter
What this episode covers
South Africans are facing yet another economic strain following sharp increases in fuel prices, with petrol rising by over R3 per litre, diesel by R6, paraffin by R4, and gas by R5. These hikes come on top of April’s increases, compounding financial pressure on households and businesses already grappling with slow economic growth. The Congress of South African Trade Unions has raised alarm over the ripple effects these increases will have on workers, commuters, and the broader economy. With South Africa’s growth hovering at around 1%, the country remains vulnerable to global shocks—particularly those linked to oil supply disruptions and geopolitical tensions. Fuel costs are a critical driver of inflation. In South Africa, they directly affect transport costs, food prices, and overall cost of living. For many workers, transport alone consumes up to 40% of their wages, with some supporting extended households of up to seven people. Government has attempted to intervene by extending fuel levy relief—R3 per litre for petrol and R3.93 for diesel—for May and June. However, this relief is temporary, with plans to reduce it in June and phase it out entirely by July. COSATU warns that this approach may not be sustainable if global oil prices remain high. The federation is particularly concerned about the lack of relief for paraffin users—many of whom are low-income households relying on it for cooking and heating. The union has proposed a range of interventions, including: • Extending fuel levy relief for longer • Making public transport more affordable • Adjusting social grants, including the SRD grant, in line with inflation • Providing food parcels to vulnerable households • Stabilising electricity costs through engagement with Eskom • Avoiding further interest rate hikes by the South African Reserve Bank COSATU also calls on the private sector to play a role—through halting retrenchments and offering financial relief such as loan repayment holidays.
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In Conversation With Matthew Parks (COSATU Parliamentary Coordinator)
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