From trolleys to travel: What a R5 fuel hike means for everyday South Africans

With much of the country’s oil supply coming from the Middle East, a significant fuel increase may be on the cards for South Africa. 

Energy economist Lungile Mashele explained that while the government has diversified the supply chain in recent years, the country is still largely reliant on imported fuel, making it vulnerable to global developments in Iran and the major shipping route, the Strait of Hormuz.

"We're definitely going to be impacted, and because we're a net importer, we're going to be impacted because of the price of Brent crude.”

With significant under recoveries on crude oil, the petrol price could be increased by up to R5 in April.

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She warns that the ripple effects of this will also be felt across the economy.

“Energy is a huge component of everything that we do in our lives, and so it will then filter through to food, agriculture, clothing, transport, flights, everything.”

Mashele emphasised the importance of energy security, adding that countries should prioritise having significant fuel reserves or develop their own oil and gas resources to reduce dependence on other nations.

This would enable South Africa to mitigate the effects of a potential fuel crunch and avoid buying fuel in a volatile market.

To listen to Mashele in conversation with 702 and CapeTalk’s Mandy Wiener, click the audio player below: