SACP welcomes fuel tax relief as positive step towards alleviating the negative impact of the international energy crisis caused by US-Israeli wars

Wednesday, 1 April 2026:- The South African Communist Party (SACP) notes the announcement of a tax relief on the fuel as put out by the ministry of Finance and ministry of Minerals and Petroleum Resources.

The reduction of petrol prices by R3.00 through the reduction of the petrol levy is a positive step towards alleviating the negative impact of the international energy crisis caused by the US and Israeli war against Iran, among other acts of imperialism.

If this intervention were not implemented, the working class would have been left in even greater economic distress than it already is. Consequently, as the SACP, we view this intervention positively.

Important as it is, however, this minimal tax cushion does not save the working class from the price increase in its totality. The working class will still have the burden to pay more from their diminishing income and social welfare provisions. The duration of this relief is announced as only one month long which still means the energy crisis is unpredictable and makes the lives of the people all the more precarious.

The national energy system is further constrained by the neoliberal model followed by South Africa which has reduced by 50 percent over the last five years our capacity for oil refinery, leading to greater exposure to risk of fuel shortages and dependence on direct imports. This challenge requires a sustained and state driven strategy to ensure protection of our people and our economy from these shocks.

The SACP reiterates its position that, in the medium term, the government should pursue a more closely aligned cooperation and relationship with the state of Iran to ensure a more sustainable solution to the national energy needs, including fuel requirements. At the same time, the intra-Africa cooperation strategy with African oil producing countries is key to minimising dependence in the longer term as well as mitigating the risks associated with oil markets farther from the continent.

The SACP calls for a comprehensive approach to address these concerns based on state intervention and state investment.

ISSUED BY THE SOUTH AFRICAN COMMUNIST PARTY
FOUNDED IN 1921 AS THE COMMUNIST PARTY OF SOUTH AFRICA.
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