SA motorists in suspense as massive fuel price hike looms TONIGHT
· The South African
The South African National Taxi Council (SANTACO) has called on the government of South Africa to urgently clarify the situation surrounding looming fuel price increases and engage the taxi industry on possible relief measures.
The appeal comes as reports of fuel shortages, refuelling limitations and the unavailability of diesel place increasing pressure on taxi operators across the country.
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Wider implications
Industry leaders warn that the situation is already affecting daily operations and could have wider implications for commuters who rely on taxis as a primary mode of transport.
According to the latest available forecast, petrol prices are expected to increase by more than R5.80 per litre, while diesel could rise by close to R11 per litre at midnight on Tuesday, 31 March, further straining operators who depend heavily on fuel to keep vehicles on the road.
SANTACO spokesperson Mmatshikhidi Phala said the organisation is acting urgently to prevent panic within the sector.
“The increases in diesel in particular are even more concerning because it appears fuel stations are overpricing it, thereby taking advantage of its lessened regulation in comparison to petrol,” Phala said.
She added that the council’s leadership is working to stabilise the situation and protect both taxi operators and the millions of commuters who rely on the industry every day.
Global oil prices driving fuel increases
The concerns in South Africa come amid a sharp surge in global oil prices, which has pushed energy costs higher around the world.
Recent market data shows Brent crude oil trading above $100 per barrel, with prices rising dramatically in March following geopolitical tensions in the Middle East.
The spike has been largely linked to the ongoing conflict involving Iran and disruptions to shipping through the Strait of Hormuz, one of the world’s most critical oil transit routes.
The disruption has affected a significant portion of global oil supplies, sending shockwaves through international energy markets.
Analysts say the crisis has already triggered one of the sharpest monthly increases in oil prices in years, with Brent crude climbing dramatically during March as supply fears intensified.
Global leaders are now scrambling to stabilise the energy market. Finance ministers from the Group of Seven (G7) countries recently pledged to take “all necessary measures” to ensure energy market stability as rising fuel costs threaten to drive inflation and slow economic growth worldwide.
Pressure on transport sector
For South Africa’s taxi industry, which transports millions of passengers daily, the rising fuel costs could translate into increased operating expenses and potential fare pressures for commuters.
SANTACO has urged authorities to work closely with the industry to find solutions that can cushion both operators and passengers from the worst impacts of the global fuel price surge.
“The president of the council has said that the council is acting with urgency to stabilise the situation and protect both operators and commuters,” Phala said.
Latest forecast
Below, the latest projections as received by The South African website from the Central Energy Fund (CEF):
FUELPRICE CHANGEPetrol 93increase of 531 centsPetrol 95increase of 582 centsDiesel 0.05%increase of 1 013 centsDiesel 0.005%increase of 1 027 centsIlluminating Paraffinincrease of 1 163 centsIf the market conditions were to remain consistent for the remainder of the month – an unlikely scenario with the rand/dollar exchange rate fluctuating and the oil price ever changing – an increase of 531 cents per litre is expected for petrol 93 octane motorists and an increase of 582 cents for 95 users is anticipated.
Meanwhile, diesel motorists would see something between a 1 013 and 1 027 cents per litre increase.
Finally, illuminating paraffin is expected to rise by 1 163 cents in price.
FUEL PRICE IN SOUTH AFRICA IMPACTED BY TWO MAIN FACTORS:
1. The international price of petroleum products, driven mainly by oil prices
2. The rand/dollar exchange rate used in the purchase of these products
Oil price
At the time of publishing the brent crude oil price is $113.29 a barrel.
Exchange rate
At the time of publishing the rand/dollar exchange rate is R17.11/$.
The final overall price changes for both petrol and diesel will be confirmed later in the month with the new prices taking effect at midnight on Tuesday, 31 March.