Ramaphosa Warns Of Sharp Fuel Price Hike As Government Weighs Levy Cut To Ease Cost Pressure

Speaking at the ANC Limpopo elective conference, Ramaphosa warned that petrol and diesel prices will rise from 1 April, driven largely by global conflict and surging oil prices.

He said he has instructed ministers to urgently develop solutions to shield South Africans from the impact, as the cost of living comes under increasing pressure.

The intervention comes as government considers reducing the fuel levy, one of the biggest components of the pump price, to cushion consumers from what is expected to be a sharp increase.

Motorists are bracing for a sharp increase from 1 April, with petrol prices expected to rise by more than R5 per litre and diesel by close to R10, according to industry data. This would push inland petrol prices above R26 per litre, marking one of the steepest fuel hikes on record.

According to reports, Godongwana is weighing a levy cut in response to rising global oil prices linked to the Iran conflict, with a decision expected imminently.

South Africa adjusts fuel prices monthly based on international oil prices, the rand-dollar exchange rate and local taxes, meaning global shocks feed directly into domestic prices.

Ramaphosa said the current spike is largely beyond South Africa’s control, pointing to geopolitical tensions and shifting global economic conditions as key drivers of the increase.

The president has also backed the formation of a ministerial task team to assess the broader economic impact of the crisis and identify measures to mitigate its effects.

Rising fuel costs are expected to have knock-on effects across the economy, particularly in transport, food and logistics, placing further strain on consumers and businesses already facing tight conditions.