South African motorists rushed to fuel stations on Tuesday amid fears of record price hikes set to take effect at midnight, driven by rising global oil prices linked to tensions involving Iran. Despite an intervention by Finance Minister Enoch Godongwana, who announced a temporary fuel levy reduction of 3 rand per litre, consumers still face steep increases. Diesel prices are set to rise by a record 7.51 rand per litre, while petrol will increase by 3.06 rand triggering widespread concern across the country.
The rush to beat the price hike led to fuel shortages in parts of Johannesburg and other areas, with some stations running out of diesel and petrol by Tuesday evening. Others began rationing supplies, limiting purchases to between 30 and 50 litres per vehicle, while long queues formed at stations still in operation. The government’s tax relief measure is expected to cost around 6 billion rand (over $350 million) in lost revenue for April, highlighting the scale of the intervention aimed at cushioning consumers from global market shocks. Experts warn the increases could have far-reaching economic effects. Higher diesel costs, in particular, are expected to raise transportation and logistics expenses, which may drive up food prices and overall inflation in the coming months.
The impact is likely to be felt most by low-income households, many of whom rely on public transport such as buses and minibus taxis. In Pretoria, fuel shortages already disrupted bus services on Tuesday, underscoring the immediate consequences of supply constraints. The price surge reflects broader global energy market volatility, with ongoing geopolitical tensions tightening supply and pushing oil prices higher, leaving countries like South Africa vulnerable to external shocks.
