Solidarity calls on govt to reduce fuel taxes

Trade union Solidarity has called on government to temporarily reduce fuel taxes

Trade union Solidarity has called on government to temporarily reduce fuel taxes. Spokesperson Jaco Kleynhans says: "Government must intervene to prevent an economic crisis."

The price of petrol is set to increase by 55 cents to R9.46 per litre while diesel will go up by 71 cents at midnight. Solidarity added that government annually raised the price of fuel while the number of consumers continued growing.

Hardest hit
"This means that government's income from the levy keeps going up. The 2007/2008 budget shows a surplus of more than R20.3 billion, while consumers have to put up with price increases". The union says its also concerned about the effect the increase will have on the mining and agriculture industries, the industries "that will be hardest hit" after private consumers.

"Mining is responsible for approximately 7.12% of the country's total diesel consumption. Agriculture uses approximately 7.78% of the national diesel supply. "These two industries are by and large the mainstays of the South African economy and they will be very hard hit by the latest price increases." The increase would affect consumers, who would soon be paying more for food. - Sapa