Editor's note: This series highlights how the Iran war's spillover is affecting Africa. In this episode, South Africa temporarily suspends a planned fuel levy increase to ease the burden on consumers as global oil prices surge, with relief set to last until May.
South Africa has announced temporary relief for motorists and consumers amid a sharp rise in global oil prices, driven by ongoing conflict between the US, Israel and Iran. The country, which relies heavily on imported fuel and petroleum products, has faced steep increases at the pump in recent weeks, exacerbated by a weakening rand.
In a joint statement, the Minister of Finance and the Minister of Energy confirmed that a planned fuel levy increase would be suspended for one month, until May 5. The measure is expected to cost the government about $353 million in revenue, but is aimed at cushioning households from the immediate impact of rising prices.
Fuel prices will still rise at midnight, but not as sharply as initially projected. For ordinary South Africans, however, one month of relief may barely make a dent.
"I don't think it can help for one month. It's just a drop in the ocean unless they've got a long-term plan," a taxi driver told CGTN.
Another driver, Nicholas, expressed concern over the viability of his business: “It's gonna be a problem. Actually. We were struggling a bit, but now this time it's going to be worse. The problem is, the taxi industry usually fluctuates. So now it's going to be worse. We're not gonna make enough money, we're not gonna have a profit and so on.”
Residents also voiced concerns about wider economic ripple effects.
"It's got a ripple effect on everything. So transport it's got to do with food, your necessities. So I don't know if the middle and lower classes will be able to handle it. Obviously salaries and you know stuff are not going up. And yeah everything's just going to go up. Meat, your normal necessities, bread, milk," Nischal Singh said.
The pause comes as other oil-importing nations take similar steps to protect their economies. For South African farmers, the impact is already pressing.
The country imports 80% of its fertilizer, and higher diesel and fertilizer costs are expected to feed into rising food prices, further straining household budgets.
"A lot of people are very poor and increased fuel costs hit the poor, hardest. Both directly in terms of their transport," Azar Jammine, chief economist at Econometrix, said.
"You've got to bear in mind that South Africa has inherited spatial inequalities due to apartheid, where people live often very far from where they work. And so transport costs of course are quite important."
Authorities have emphasized that the levy pause is temporary and will be reassessed in May, leaving consumers to hope that global oil markets stabilize before the next round of price increases.
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