He stressed that the Commission will closely monitor signs of price gouging across several sectors in South Africa.<\/p>\n\n\n\n
Hodge explained that price gouging is essentially opportunistic and exploitative behaviour in a crisis where businesses take advantage of supply disruptions or major cost shocks to profiteer.<\/p>\n\n\n\n
He said the concern is not only about what motorists will pay at the pump, but also how rising fuel and oil-linked costs could spread through the broader economy.<\/p>\n\n\n\n
\u201cConsumers and even other businesses will be expecting some price increases, obviously at the pump, but also beyond that,\u201d he said.<\/p>\n\n\n\n
He noted that the impact of higher fuel and oil prices can ripple across the economy, affecting everything from fertiliser and plastics to transport and food.<\/p>\n\n\n\n
This makes the situation dangerous for consumers and smaller businesses, who may expect prices to rise but have no clear way of knowing what is reasonable.<\/p>\n\n\n\n
According to Hodge, the Commission is particularly concerned about two common forms of price gouging.<\/p>\n\n\n\n
The first is what he described as \u201cjumping the gun,\u201d where a business raises prices before it has actually experienced a higher cost itself.<\/p>\n\n\n\n
\u201cYou\u2019re sitting with stocks at the old price, which you could sell at the old price, but you choose to sell at the new price,\u201d he said.<\/p>\n\n\n\n
The second is where a business raises prices by far more than the increase in its own costs. Hodge said both of these practices have already been recognised by the courts as forms of price gouging.<\/p>\n\n\n\n
Department of Mineral and Petroleum Resources is also keeping a close eye <\/h2>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/04\/petrol-station-1024x576.jpg\")
<\/a><\/figure>\n\n\n\nHe added that there is also a third warning sign businesses should keep in mind. This is whether they pass on price decreases when costs eventually decline.<\/p>\n\n\n\n
Hodge said this is a major issue because businesses often push prices up fast, but are much slower to bring them back down.<\/p>\n\n\n\n
The Competition Commission previously flagged this behaviour in multiple cost-of-living reports, describing it as a “rocket and feather” trend.<\/p>\n\n\n\n
Hodge said the commission has the power to investigate this by looking at any company’s cost structures and profit margins before and after the increases.<\/p>\n\n\n\n
\u201cIf they haven\u2019t changed, we\u2019ll move on, but if they have increased substantially, then we\u2019re interested in why.\u201d<\/p>\n\n\n\n
He urged both consumers and businesses to report suspicious price hikes. He added that complaints from the public and from companies further down the value chain are often the first to alert the Commission.<\/p>\n\n\n\n
This warning from the commission follows that of the Minister of Mineral and Petroleum Resources, Gwede Mantashe.<\/p>\n\n\n\n
At the end of March, he warned petrol stations that withholding fuel is illegal and that he would prosecute those found doing so in South Africa.<\/p>\n\n\n\n
<\/a><\/figure>\n\n\n\nHe added that there is also a third warning sign businesses should keep in mind. This is whether they pass on price decreases when costs eventually decline.<\/p>\n\n\n\n
Hodge said this is a major issue because businesses often push prices up fast, but are much slower to bring them back down.<\/p>\n\n\n\n
The Competition Commission previously flagged this behaviour in multiple cost-of-living reports, describing it as a “rocket and feather” trend.<\/p>\n\n\n\n
Hodge said the commission has the power to investigate this by looking at any company’s cost structures and profit margins before and after the increases.<\/p>\n\n\n\n
\u201cIf they haven\u2019t changed, we\u2019ll move on, but if they have increased substantially, then we\u2019re interested in why.\u201d<\/p>\n\n\n\n
He urged both consumers and businesses to report suspicious price hikes. He added that complaints from the public and from companies further down the value chain are often the first to alert the Commission.<\/p>\n\n\n\n
This warning from the commission follows that of the Minister of Mineral and Petroleum Resources, Gwede Mantashe.<\/p>\n\n\n\n
At the end of March, he warned petrol stations that withholding fuel is illegal and that he would prosecute those found doing so in South Africa.<\/p>\n\n\n\n