- Creecy rejected a Road Accident Fund proposal to raise its levy from R2.25 to up to R3 a litre.
- Cosatu wants Parliament to pass a R10-billion fuel relief Bill before the end of October. The National Assembly has not yet debated it.
The Congress of South African Trade Unions (Cosatu) has welcomed Transport Minister Barbara Creecy’s refusal to back a higher Road Accident Fund levy on fuel, and wants more done to ease fuel prices before the next price change in early November.
Creecy told eNCA, in an interview reported on 12 October, that she would not apply to the National Treasury for an increase “as long as I am in this job”.
The Road Accident Fund (RAF) had proposed raising its levy, which is part of the pump price, from R2.25 to up to R3 a litre. That is an increase of 75 cents, or 33%.
Creecy said motorists are under too much financial pressure and that the priority is to fix the fund’s management and finances. She also ruled out extra government funding for the fund.
In a statement on Thursday, 15 October, Cosatu said the RAF’s request would have been a devastating blow to millions of workers and commuters. The federation said fuel prices have risen by more than 25% for petrol and 50% for diesel over the past year.
Cosatu said this has slowed economic growth, pushed inflation up to 4.4% and possibly 5% next month, and led to two repo rate increases, blaming the war in the Persian Gulf.
Cosatu also called for action against corruption, wasteful spending and financial leakages at the RAF, and welcomed the appointment of a new chief executive.
“Government must prioritise the RAF Bill’s retabling at Parliament to resolve the Fund’s structural faultlines, in particular to ensure its limited resources are directed towards providing relief to working class claimants and not the wealthy who can afford private insurance,” the statement read.
Cosatu wants Parliament to pass the Second Special Appropriation Bill before the end of October. The Bill would give R10-billion to the Equalisation Fund of the Central Energy Fund, which helps cushion fuel prices.
Cosatu wants the money used for fuel levy relief.
“The initial fuel levy holiday provided by the African National Congress led government unlocked invaluable relief for struggling commuters and the economy during the outbreak of the war. It reduced inflation by 0.7%.”
Parliament’s Standing Committee on Appropriations adopted its report on the Bill on 8 October. The National Assembly has still to debate it.
President Cyril Ramaphosa said in early October that government is considering ways to ease the fuel price burden but must stay careful with public money.
Creecy’s pledge is about her department’s request. It doesn’t decide the other taxes and levies in the fuel price, which the Treasury sets.
The next fuel price change is normally on the first Wednesday of the month, which is 4 November. Early data from the Central Energy Fund point to a smaller petrol increase than October’s, and a possibly larger increase for diesel and paraffin gaps.
