ZCTU warns government over fuel hikes induced mass action

THE Zimbabwe Congress of Trade Unions (ZCTU) says the incessant fuel hikes effected recently may trigger nationwide protests if urgent price reductions are not considered. On Wednesday, the government, through the Zimbabwe Energy Regulatory Authority (ZERA), hiked the price of diesel and petrol per litre to US$2, 05 and US$2,17, respectively, from US$1,77 and US$1,71. […] The post ZCTU warns government over fuel hikes induced mass action appeared first on NewZimbabwe.com.

ZCTU warns government over fuel hikes induced mass action

THE Zimbabwe Congress of Trade Unions (ZCTU) says the incessant fuel hikes effected recently may trigger nationwide protests if urgent price reductions are not considered.

On Wednesday, the government, through the Zimbabwe Energy Regulatory Authority (ZERA), hiked the price of diesel and petrol per litre to US$2, 05 and US$2,17, respectively, from US$1,77 and US$1,71.

This was prompted by the current war pitting the United States and Israel against Iran, which has rocked global commodity prices, particularly oil, where trading is ranging from US$106 to US$115 per barrel of Brent crude.

The fuel price hikes have made Zimbabwe the second most expensive country in SADC, after Malawi, according to fuel price tracker Global Petrol Prices.

But in a statement, the ZCTU Secretary General, Tirivanhu Marimo said the latest hikes have further plunged already struggling workers into deep hardships. He begged the government to recall the catastrophic impact created by such exorbitant hikes in the past.

“We warn the government that the current wave of fuel increases could trigger civil unrest from already agitated Zimbabweans who are on the edge as happened in January 2019 when fuel was increased by between 130% and 150%.

“The ZCTU therefore urges the government to review down wards or totally scrap all fuel taxes as the perpetuation of the current prices will only result in the suffering of workers, businesses and the generality of Zimbabweans,” he said.

The workers group leader said while it is generally acceptable to adjust fuel prices in line with international oil prices, the margins of the current increases have sent shocking waves among workers and Zimbabweans who are now paying more than double in transport costs.

He questioned the rationale behind pricing fuel at the exorbitant US$2, 17 way above regional average prices which are hovering at US$1, 40   and below.

“ZCTU believes our fuel is overpriced due to numerous irrational taxes and levies. For instance, the government taxes 86 cents per liter of blend petrol and also taxes 42 cents per liter for diesel. These are costs directly transferred to the consumer by business people. We also find it irrational to blend petrol with ethanol if the end result is an increase in fuel costs,” Marimo said.

He said instead of the knee jerk price hike by the government, such adjustments should have been introduced gradually in correspondence to global market dynamics to avoid shock and panic in the market.

“In the meantime, the ZCTU also urges employers to award meaningful salary increases that will cushion workers against the biting cost of living cause by the current high fuel prices,” added Marimo.

The post ZCTU warns government over fuel hikes induced mass action appeared first on NewZimbabwe.com.