As the oil price edges higher, it can only point to another fuel price increase for South Africa in May.
Neil Roets, CEO of Debt Rescue, said another increase in fuel prices should put the country on red alert.
“Even though the expected hikes have moderated from earlier in April, the reality is that consumers are still facing a significant increase, which many households simply cannot absorb at this time.”
The latest data from the Central Energy Fund showed an under-recovery of R1.76 for 93 unleaded petrol and R2.09 for 95 unleaded. If current trends persist, South Africans could see a petrol price increase of around R1.35 per litre.
The diesel situation is more severe. Although the under-recovery is smaller than earlier in April, diesel users could still face an increase of around R5.40 in May, possibly easing to around R4.35 if trends improve.
“Oil prices have surged again amid concerns of renewed military escalation in the Middle East. For a country like South Africa, heavily reliant on imported fuel, this volatility translates directly into higher costs at the pumps,” Roets said.
“Asking consumers to once again brace for impact is not realistic. Most households have already run out of room to adjust their budgets. They are hanging on by a very thin thread.”
Fuel price increases, particularly diesel, raise transport costs, which in turn push up food prices and essential household expenses.
“Consumers are hit on multiple fronts, and this will inevitably place upward pressure on inflation.”
“The knock-on effects are deeply concerning. For millions of South Africans, commuting costs are becoming unaffordable. Travel to and from work is increasingly financially unviable, especially for lower-income households.”