The Federation of Unions of South Africa (FEDUSA) is calling on government to urgently consider measures to cushion workers, households and businesses from the impact of the latest fuel price increases.
Effective from 2 September 2026, petrol prices increased by R1.34 per litre, while diesel increased by R2.93 per litre for 0.05% sulphur diesel. The increases come at a time when households are already facing significant cost-of-living pressures.
Fuel price increases have consequences far beyond the petrol station. Higher fuel costs place additional pressure on the cost of commuting, public transport, logistics and the distribution of goods. For workers, this can mean a greater share of household income being absorbed by basic transport and living costs.
The impact is particularly concerning given recent inflationary pressures. According to Statistics South Africa, fuel prices increased by 34.3% year-on-year in June 2026, with diesel increasing by 50.8% and petrol by 31.7%. Transport was the largest contributor to the annual inflation increase during that period.
While fuel prices subsequently eased in July, petrol remained 19.3% higher than a year earlier, while diesel was still 28.8% higher year-on-year.
“Workers cannot continue to carry the burden of every economic shock. When fuel prices increase, the impact is felt in household budgets, transport costs and ultimately the price of goods and services,” said FEDUSA.
FEDUSA acknowledges that international oil prices and exchange-rate movements are significant factors in determining domestic fuel prices. However, the organisation believes that government must also consider the socio-economic consequences of these increases and explore appropriate interventions when exceptional price pressures arise.
FEDUSA is therefore calling for the re-introduction of a temporary and targeted fuel subsidy to provide relief to consumers and businesses during periods of significant fuel-price volatility.
Such a mechanism should be time-bound, transparent and fiscally responsible, while being complemented by longer-term measures to reduce South Africa’s vulnerability to international fuel-price shocks.
“The question cannot only be why fuel prices are rising. We must also ask who ultimately carries the cost. For millions of workers, every increase at the pump places additional pressure on already stretched household budgets.”
FEDUSA believes that protecting workers’ purchasing power must remain central to South Africa’s economic policy response.
Workers need relief, businesses need stability, and South Africa needs practical solutions to the rising cost of living.
ENDS
Issued by:
Federation of Unions of South Africa (FEDUSA)
For media enquiries contact:
Betty Moleya
FEDUSA Media and Communications
063 736 5533
For interviews:
Riefdah Ajam
FEDUSA General Secretary
079 696 2625
Ashley Benjamin
FEDUSA Deputy General Secretary
083 258 4433