Commission issues stern warning against fuel price gouging amid global oil surge

The Competition Commission is warning businesses against fuel price gouging as global oil prices surge.

The ongoing war in the Middle East has pushed oil above $100 a barrel in recent weeks, with local fuel prices expected to rise sharply. Data from the Central Energy Fund (CEF) indicates that petrol could increase by between R5.17 and R5.72 per litre, depending on the grade.

The commission said that there is a significant risk that some businesses may exploit the situation by raising prices beyond what is justified.

According to Spokesperson Siyabulela Makunga, the risk of exploitation extends beyond the pump to various industries that rely heavily on oil-based inputs.

"This risk is prevalent for unregulated fuels such as diesel retail prices and jet fuel; oil-based products such as nitrogen-based fertilisers and plastics; fuel-intensive services such as air, land and sea transport and logistics; and all other products and services that rely on these inputs, particularly food products and delivery services."

Makunga warns that businesses engaging in price gouging are at risk of serious repercussions. The Commission is closely monitoring market behaviour to ensure that price adjustments remain within reasonable limits.

"Businesses that increase prices in advance of any actual fuel cost increases or increase prices by far more than their actual cost increases, risk being prosecuted and found guilty of price gouging," Makunga said.

"The same applies to businesses that continue to charge higher prices after the oil price shock has subsided."