“COSATU is urging Parliament to urgently pass the Second Special Appropriation (2025/26 Financial Year) Bill, which would allocate R10 billion to the Central Energy Fund’s Equalisation Fund to help cushion households, workers and businesses from record fuel-price increases. The call comes as petrol prices rise above R30 a litre and Parliament’s consideration of the appropriation bill becomes increasingly urgent.”
COSATU Pushes Parliament to Fast-Track R10 Billion Fuel Relief Bill as Record Petrol Prices Hit Consumers
South Africa is facing renewed political pressure to intervene in the country’s fuel-price crisis after the Congress of South African Trade Unions (COSATU) called on Parliament to urgently advance legislation that could unlock R10 billion for fuel-price relief. The demand comes as motorists, commuters, households and businesses confront some of the highest fuel prices ever recorded in the country.
The proposed intervention is contained in the Second Special Appropriation (2025/26 Financial Year) Bill, which provides for an additional R10 billion allocation to the Central Energy Fund’s Equalisation Fund. COSATU argues that the money should be deployed to cushion South Africans against international oil-price volatility and reduce the economic damage caused by rapidly rising fuel costs.
The legislation has become particularly significant as South Africa enters a period of severe fuel-price pressure. From Wednesday, 7 October, petrol prices are scheduled to increase by between R3.12 and R3.33 a litre, depending on the grade. Diesel prices are also rising by between R2.84 and R3.24 a litre, while illuminating paraffin is becoming substantially more expensive. In Gauteng, the price of 95-octane petrol is expected to reach R30.25 a litre, crossing the R30 threshold for the first time.
For COSATU, the increases are not simply a matter of motorists paying more at filling stations. The federation says the consequences will spread through the wider economy because fuel is a major input into transportation, logistics, food distribution, manufacturing and everyday business activity. Higher fuel prices can therefore translate into higher prices for goods and services, increasing pressure on households already struggling with the cost of living.
COSATU Parliamentary Coordinator Matthew Parks has argued that Parliament should act quickly so that the R10 billion allocation can be used to provide relief during October and November. The union federation believes that intervention could help protect workers and commuters, support consumer spending and reduce some of the inflationary pressure generated by the fuel shock.
The legislative process is already under way. Parliament’s Select Committee on Appropriations has scheduled a public hearing on the Second Special Appropriation Bill for Thursday, 8 October 2026. Stakeholders were required to submit written submissions or indicate their intention to make oral presentations by 16:00 on Tuesday, 6 October. The bill was tabled by Finance Minister Enoch Godongwana on 30 July.
The parliamentary process is important because the proposed R10 billion cannot simply be released by political decision. South Africa’s appropriation framework requires Parliament to consider and approve spending through the appropriate legislative procedures. The bill must therefore pass through parliamentary scrutiny before the allocation can become available for its intended purpose.
The current debate also highlights the broader role of legislation in responding to economic emergencies. Although international oil prices and geopolitical developments are major drivers of South Africa’s fuel costs, Parliament and government retain influence through taxation, fiscal policy, regulation and targeted interventions. This has prompted political parties and organised labour to demand that government use the tools available to limit the impact on vulnerable households.
The African National Congress has separately called for consideration of reductions in fuel and Road Accident Fund levies. ANC MP Fasiha Hassan said higher fuel prices were increasing the cost of living and that government needed to consider both immediate and longer-term interventions. The ANC has also pointed to the need to strengthen domestic refining capacity as part of a longer-term strategy for reducing vulnerability to international fuel-price shocks.
The Economic Freedom Fighters has also criticised the latest increases, particularly the rise in illuminating paraffin prices. The party argues that poorer households are especially exposed because many families depend on paraffin while lacking affordable and reliable access to electricity. It has called for a reduction in the fuel levy and a review of the fuel-pricing mechanism.
The disagreement over the appropriate response illustrates the political significance of the legislation. The government must balance immediate relief for consumers against the need to protect public finances and maintain fiscal discipline. Allocating R10 billion to the Central Energy Fund could provide a temporary buffer, but it does not eliminate the underlying causes of South Africa’s vulnerability to global oil markets.
South Africa imports a significant portion of the petroleum products it consumes, leaving domestic prices sensitive to international crude-oil and refined-product prices as well as movements in the rand. When international prices rise sharply, the impact can quickly reach South African motorists and businesses.
The present crisis has been intensified by geopolitical instability and higher international energy costs. Domestic fuel prices are determined through a regulated mechanism that reflects international petroleum prices and the exchange rate, among other factors. As a result, even when government does not control the global oil market, international shocks can have substantial consequences for South African consumers.
The proposed legislation is therefore being presented as a protective mechanism rather than a permanent solution. COSATU says the R10 billion allocation could help absorb some of the immediate shock while government works on longer-term measures. These include improving refining capacity, strengthening energy security and examining the structure of fuel taxes and pricing.
There are also concerns about inflation. Fuel increases can have a multiplier effect because transportation costs are incorporated into the price of many products. A farmer transporting produce, a trucking company moving goods, a commuter travelling to work and a small business delivering products may all face higher costs when fuel prices rise.
This creates a difficult policy challenge for the South African Reserve Bank. If fuel-price increases contribute significantly to consumer inflation, monetary authorities may face pressure to keep interest rates higher for longer or consider further tightening. COSATU has warned that another interest-rate increase would place additional pressure on indebted households and businesses.
The political stakes are also high because South Africa is approaching the 4 November 2026 local government elections. Rising living costs and the government’s response to fuel prices are likely to become important issues for voters. Political parties will be under pressure to demonstrate that they can respond to immediate economic concerns while also presenting credible long-term solutions.
For Parliament, the Second Special Appropriation Bill therefore represents more than a technical adjustment to government finances. It has become a test of how quickly the legislature can respond to an economic shock and whether lawmakers can convert political promises of relief into an approved and implementable fiscal intervention.
Parliament’s own legislative information shows that the bill is currently part of the active legislative programme. Under South Africa’s parliamentary process, appropriation legislation must be considered through the relevant committees and Houses before becoming law. Public participation is also an important part of the process, allowing affected stakeholders and members of the public to make submissions.
The immediate question is therefore whether Parliament can complete the required process quickly enough for the R10 billion allocation to provide meaningful relief during the current fuel-price shock. COSATU is demanding urgency, while the parliamentary process must still satisfy constitutional and legislative requirements.
Ultimately, the fuel-price debate demonstrates the connection between legislation, economic policy and everyday life. A parliamentary appropriation may appear technical, but its consequences can reach directly into household budgets, transport costs, food prices and business expenses.
With petrol now moving beyond R30 a litre in parts of the country, pressure on lawmakers is intensifying. COSATU wants Parliament to approve the R10 billion allocation, while the ANC and EFF are demanding additional measures involving levies and fuel-pricing policy. The government, meanwhile, faces the difficult task of providing relief without creating unsustainable fiscal commitments.
The coming days will therefore be crucial. The public hearing scheduled for 8 October will give stakeholders another opportunity to present their views on the Second Special Appropriation Bill. The outcome could determine whether the proposed R10 billion intervention moves closer to implementation at a time when South African households and businesses are facing an increasingly severe fuel-price shock.
For millions of South Africans, the issue is ultimately straightforward: higher fuel prices mean less money available for food, transport, education, housing and other necessities. For Parliament, the challenge is to determine whether the proposed legislation can provide immediate protection while forming part of a broader strategy to strengthen South Africa’s energy security and economic resilience.
