UASA Media Release: 16 April 2025
Statement by Abigail Moyo, spokesperson of the trade union UASA:
The recently announced increase in the fuel price by the National Energy Regulator of South Africa (Nersa) will have a financial effect on workers in the next two financial years.
The decision follows Nersa’s decision to grant Transnet a petroleum pipelines tariff increase of 5.23c/L in 2025/26 and 3.80c/L in 2026/2027. The Nersa increase primarily addresses the costs of transporting fuel from Durban to Johannesburg, where Transnet Pipelines owns, maintains and operates a network of 3800km of pipelines transporting 17.1 billion litres of petroleum annually.
Although the granted increases will allow Transnet to substantially increase allowable revenue, workers will remain affected by the high cost-of-living outcomes associated with the increases.
The SA Reserve Bank (SARB) also cautioned that borrowing costs worldwide will likely remain higher for longer as the inflation outlook is not looking positive following US President Donald Trump’s aggressive trade tariffs.
Due to extreme trade tensions, last month’s interest rates remained unchanged; however, uncertainty around inflation and the central bank’s target range has risen since the beginning of the year.
Additionally, the proposed 0.5%-point VAT increase coming into effect on May 1, to be followed by another 0.5%-point increase next year might add an estimated 0.2% points to headline inflation annually.
The economic outlook remains gloomy as consumers are at risk of financial strain in the long run. UASA finds the hardships that may befall consumers as the economy faces challenges disheartening. We hope the government has turnaround plans to help ease the economic difficulties threatening South Africans’ growth and development.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.