Rising Fuel Prices
By Bongane Tshabalala
On Wednesday, 5 February 2025, the Economic Freedom Fighters (EFF) strongly criticised the latest fuel price hike, attributing the economic strain on South Africans to the Government of National Unity (GNU). The party accused the GNU of failing to implement tangible economic policies that could cushion citizens from rising costs, arguing that the coalition’s reliance on neoliberal approaches was deepening financial hardship.
The Department of Mineral Resources and Energy (DMRE) confirmed the new fuel price adjustments, effective today. The price of petrol increased by 82 cents per litre, while diesel saw an even steeper hike of R1.01 to R1.05 per litre, depending on the grade. This means that a litre of 95 Unleaded petrol now costs R22.45 inland and R21.62 at the coast. These increases come amid an already challenging economic climate, with food prices, transport costs, and general living expenses continuing to climb.
EFF: “GNU’s Economic Policies Are Failing South Africans”
EFF National Spokesperson Sinawo Thambo did not hold back in his criticism, saying that the GNU had misled South Africans with promises of economic stability and a lower cost of living.
“We were told that the coalition of neoliberal forces forming the so-called Government of National Unity (GNU) would stabilise the economy and reduce the cost of living. However, this petrol price hike is yet another reminder that the GNU has no practical plan to stabilise the economy.”Thambo accused the GNU of relying on “fiction and hope” rather than implementing policies that directly address economic inequality. He argued that the government’s approach prioritises the interests of large corporations while leaving ordinary South Africans to bear the brunt of economic instability.
“Instead of gambling with economic theories and stock market speculation, South Africa needs cheap energy, beneficiation, employment, and productive industries, not an economy dictated by the Johannesburg Stock Exchange.”Thambo warned that the EFF had long predicted the failure of the GNU’s economic strategy, which he described as “a desperate concoction of policies” aimed at appeasing financial markets rather than addressing real economic issues.
Fuel Price Hike Impact on Consumers and Businesses
The rise in fuel prices will have significant consequences for South Africans. Higher fuel costs mean increased expenses for transportation, which in turn pushes up the price of food, goods, and services. Many South Africans are already struggling with high food inflation, electricity tariffs, and economic uncertainty.
The latest increases will likely hit small businesses and informal traders the hardest, as they rely heavily on affordable transportation to operate. The public transport sector, which millions depend on daily, is also expected to adjust taxi and bus fares upwards, making commuting even more expensive for the working class.
The Congress of South African Trade Unions (COSATU) also weighed in on the issue, warning that the rising cost of living is becoming unsustainable for workers and lower-income households. COSATU spokesperson Sizwe Pamla stated:
“Workers are finding it harder and harder to afford the basics. The GNU must take urgent action to prevent South Africans from being completely crippled by these price increases.”EFF Calls for Parliamentary Intervention
In response to the fuel price hike, the EFF announced plans to escalate the matter to Parliament. Thambo confirmed that the party would write to the Chairpersons of the Portfolio Committee on Minerals and Energy and the Standing Committee on Finance to demand a joint meeting and public hearings on the issue.
“We will push for urgent interventions that can bring down the cost of living for our people and ensure that the economy is structured to benefit the masses, not a handful of elites.”The EFF believes that state intervention is necessary to stabilise fuel prices and shield consumers from further economic shocks.
Government Responds to Fuel Price Hike Criticism
The GNU has defended its position, arguing that the increase in fuel prices is a result of international oil market fluctuations and the weakening rand rather than government policy. A spokesperson for the Department of Mineral Resources and Energy explained that global crude oil prices had risen due to geopolitical tensions in the Middle East and disruptions in global supply chains.
“South Africa does not set fuel prices arbitrarily. The adjustments are based on factors including the international price of crude oil, import costs, and currency exchange rates. While we understand the frustration of consumers, these increases are largely outside our control.”However, the government has acknowledged the impact of rising fuel costs on South Africans and has hinted at potential relief measures. The Treasury is reportedly considering temporary reductions in fuel levies, but no official decision has been made.
Economic Experts Weigh In on Rising Fuel Costs
Economic analysts have noted that while external factors play a role in fuel price adjustments, domestic policies and taxes also contribute significantly to the final cost at the pump. Economist Duma Gqubule suggested that the government should explore reducing or temporarily suspending certain fuel taxes to provide immediate relief.
“If the government is serious about reducing the cost of living, a fuel tax review should be on the table. Many countries offer subsidies or tax relief during economic crises.”Other experts have highlighted the need for investment in alternative energy solutions to reduce South Africa’s dependence on imported fuel.
EFF Urges South Africans to “Resist Economic Onslaught”
The EFF has called on South Africans to push back against rising costs and demand accountability from the GNU. Thambo insisted that the party would continue to fight for a just, radical, and realistic economic agenda that prioritises the needs of ordinary citizens over corporate greed.
“The working class must resist this economic onslaught. The EFF remains resolute in the fight for an economy that serves the people, not the interests of big business.”The party has also hinted at possible mass action if the GNU fails to provide solutions.
What Lies Ahead?
As fuel prices continue to rise, pressure is mounting on the GNU to take decisive action. The government is caught between balancing fiscal responsibility, global economic pressures, and the immediate needs of struggling citizens.
Potential solutions on the table include:
✔️ A temporary reduction in fuel levies to ease consumer burden
✔️ Increased investment in renewable energy to reduce reliance on imported oil
✔️ More direct state intervention to regulate fuel prices
However, whether the GNU will act swiftly enough to prevent further economic hardship remains to be seen.
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