South Africans are bracing for a steep fuel price increase on 1 April, with petrol expected to rise by more than R5 a litre and diesel by nearly R9.
Economist Dawie Roodt explained the drivers behind the surge:
“There are basically two reasons. One has to do with increasing international oil prices, which have spiked due to the war in the Middle East. The other is that the South African rand has depreciated markedly over the last couple of weeks. There’s a double effect: a weaker currency buying expensive oil, leading to this huge increase in fuel prices.”
Roodt warned that the increase will ripple through the economy, affecting inflation, interest rates, and daily household budgets.
“The April inflation data is likely to show a steep increase, reaching four and a half or even five percent. My advice to consumers is to make sure you have a budget, contingency reserves, and that you don’t panic-sell investments. The next couple of months are going to be challenging.”
Meanwhile, Western Cape Premier Alan Winde raised concerns over fuel hoarding by suppliers.
“This is unethical. Withholding supply places the economy and livelihoods, especially in the agriculture sector, at great risk. I have written to the President and Minister requesting urgent intervention,” he said.
The Competition Commission and the Forum for South Africa have warned that price gouging is illegal and have called for swift government action to protect consumers. FOSA leader Tebogo Mashilompane described the hikes as “economic violence” that will hit households and small businesses.
Photo: Sourced
