JOHANNESBURG, Gauteng — South Africa fuel prices are bracing for a severe shock as petrol costs threaten to breach the R30 per litre mark next week. In response to the impending hikes, Zwelinzima Vavi, General Secretary of the South African Federation of Trade Unions (SAFTU), has heavily criticized the Reserve Bank’s monetary policies and called for immediate government intervention, including a wealth tax, to cushion ordinary citizens from the escalating cost of living crisis.
Motorists are expected to face an increase of approximately R3 per litre, driven by a combination of rising global oil prices and a weakening rand. While the government has promised to intervene and cushion the impact, trade unions argue that current measures are insufficient to protect working-class citizens.
Geopolitical Turbulence and the Fuel Shock
Speaking on the impending fuel hike, Zwelinzima Vavi attributed the crisis largely to exogenous external factors and geopolitical turbulences. He specifically pointed to international political shifts, including Donald Trump’s political return and unilateral actions by the United States regarding Iran’s oil reserves outside of United Nations regulations. Vavi argued that these global dynamics and the pursuit of foreign mineral wealth by international oligarchs are directly driving up the price ordinary South Africans pay at the pump.
A Broadening Cost of Living Crisis
The fuel price shock is the latest in a series of petrol hikes throughout 2026, compounding a severe cost of living crisis. Vavi noted that taxi associations are already being forced to increase fares in response to the rising costs.
Furthermore, workers are facing steep increases in administered municipal costs without any corresponding salary adjustments. In Johannesburg, water tariffs have increased by 12.5%, sanitation by 11%, electricity by 8.63%, refuse removal by 6.2%, and property rates by 3.6%. Vavi emphasized that no worker has received wage increases to match these soaring municipal and living expenses.
Clash with the Reserve Bank Over Interest Rates
A major focal point of Vavi’s critique is the South African Reserve Bank. He described the central bank’s recent decision to increase the repo rate by 25 basis points—bringing it to 10.75%—as “reckless.”
While the Reserve Bank maintains that its mandate to prioritize inflation (keeping it within a 3% to 5% target range) is necessary to protect the purchasing power of the poor, Vavi strongly disagrees. He argued that the central bank’s strict inflation-targeting mandate disproportionately favors the financial sector and comes at a severe cost to the broader economy.
Unemployment and Wealth Inequality Take Center Stage
Challenging the narrative that inflation is the primary enemy of the working class, Vavi asserted that South Africa’s number one crisis is unemployment. He cited staggering figures, noting that unemployment affects nearly 50% of the entire population, with women facing a 53% unemployment rate. Furthermore, eight of the country’s nine provinces have unemployment rates exceeding 40%.
Vavi argued that the obsession with low inflation has resulted in near-zero GDP growth for decades. He countered the Reserve Bank’s claims by highlighting extreme wealth disparity, stating that there is no “rent in the hands” of the unemployed majority. Instead, he pointed out that the top 1% of the population holds 50% of the country’s wealth, while the top 10% holds wealth equal to that of the bottom 90%.
Calls for Government Intervention and a Wealth Tax
Addressing the government’s cushioning measures, Vavi acknowledged that the Minister in the Presidency recently argued that the situation “could have been worse,” noting that the general fuel levy was suspended for a few months at the beginning of the crisis. However, Vavi pointed out that this diesel and fuel levy intervention was not sustained beyond June and July.
Looking forward, the SAFTU General Secretary issued a strong call to action for the government. He demanded that authorities renew efforts to completely scrap the fuel levy to provide immediate relief. More broadly, Vavi called on the government to fulfill historical democratic promises by implementing a wealth tax and a solidarity tax. He urged the wealthiest citizens to acknowledge the extent of poverty and inequality, calling on the top 1% and 10% to contribute to resolving the crisis in what remains the most unequal society in the world.
