Civil rights organisation AfriForum has urged the government to provide relief to motorists and the broader economy as South Africa braces for a sharp increase in fuel prices next month.<\/p>\n\n\n\n
The organisation has written to the Minister of Finance, Enoch Godongwana, urging him to halt the planned increase in the general fuel levy and instead introduce a temporary tax cut to cushion consumers from the expected surge.<\/p>\n\n\n\n
The appeal comes as the latest data from the Central Energy Fund (CEF) indicate significant price pressures are building in the fuel market.<\/p>\n\n\n\n
According to the latest figures from the first week of March, both petrol and diesel are showing steep under-recoveries.<\/p>\n\n\n\n
Petrol prices are currently showing an under-recovery of around R3.35 per litre\u2014significantly worse than earlier estimates\u2014while diesel prices are under-recovering by roughly R5.80 per litre.<\/p>\n\n\n\n
These under-recoveries indicate that fuel prices could rise sharply when the next monthly adjustment takes effect.<\/p>\n\n\n\n
Some economists have warned that if these trends continue for the rest of the month, petrol prices could rise far beyond R5.00 per litre.<\/p>\n\n\n\n
AfriForum said the looming increases are largely being driven by the escalation of conflict involving Iran, which has dramatically increased oil prices.<\/p>\n\n\n\n
The organisation noted that renewed tensions in the Middle East have triggered a global energy shock, with oil prices surging by more than 40% in recent weeks.<\/p>\n\n\n\n
Some analysts have warned that prices could climb above $150 per barrel if the conflict intensifies.<\/p>\n\n\n\n
AfriForum argues that government intervention is necessary to shield households and businesses from the knock-on effects of higher fuel prices across the economy.<\/p>\n\n\n\n
In a letter to the finance minister, AfriForum\u2019s head of public relations, Ernst van Zyl, said the type of relief being proposed has already been used before in times of crisis.<\/p>\n\n\n\n
He pointed to measures introduced in 2022 when the government temporarily reduced the general fuel levy by R1.50 per litre.<\/p>\n\n\n\n
This was done to help ease pressure on households during the global energy shock triggered by the war between Russia and Ukraine.<\/p>\n\n\n\n
\u201cAfriForum, alongside many economists, believe this to be the appropriate approach to cushion the impact of this latest crisis of a similar nature,\u201d Van Zyl said.<\/p>\n\n\n\n
He added that fuel price increases have far-reaching consequences throughout the economy because transport costs affect nearly every stage of production and distribution.<\/p>\n\n\n\n
\u201cPeople often underestimate the effect of a fuel price hike on the price of goods,\u201d Van Zyl said. <\/p>\n\n\n\n
\u201cRaw materials need to be transported to be turned into intermediate goods. Intermediate goods need to be transported to be turned into final goods.\u201d<\/p>\n\n\n\n
\u201cFinal goods need to be transported to be sold to consumers. Every step becomes more expensive if the fuel price increases.\u201d<\/p>\n\n\n\n
AfriForum’s full letter to the Minister of Finance, Enoch Godongwana, can be viewed below. <\/p>\n\n\n\n