JOHANNESBURG - The Eskom price hike will hit consumers harder than fuel price increases, says Mervyn Abrahams of Pietermaritzburg Economic Justice and Dignity (PMBEJD).
While attention has focused on rising fuel prices amid the war in the Middle East, Abrahams says a more immediate concern is at South Africans’ doorstep: electricity.
The National Energy Regulator of South Africa (NERSA) recently approved an 8.76 percent electricity increase, effective 1 April.
Eskom warns that municipal customers will face an even steeper average increase of over 9 percent starting 1 July.
Abrahams warns that the increase could consume more than 43 percent of many households’ incomes.
"That is going to be hard for consumers,” he says.
“The farms, plants, storage and all elements that go into the production and safe delivery of food rely heavily on electricity."
The PMBEJD estimates that 350 kilowatts of electricity could cost around R1,181.89.
With the national minimum wage rising to R30.23 per hour in March -- a 5 percent increase from R28.79 in 2025 -- a 40-hour workweek equates to roughly R1,209.20 weekly or R5,200 monthly.
Abrahams says the electricity increase will have an immediate effect on food prices, expected around May–June.
"Food is transported by trucks, not rail,” he notes.
"It is something to consider as the war becomes uncertain and global oil prices continue to rise. So there will be a definite impact that cannot be downplayed.
"We'll see increases, we're not sure about the exact amount, we don't have figures yet," he adds.
Concerns over fuel supply, meanwhile, may be overblown.
The Department of Mineral and Petroleum Resources has urged South Africans not to panic or bulk buy.
Director-General Jacob Mbele explains that companies order products up to six weeks in advance, with crude oil typically ordered three months before delivery, allowing sufficient time for refining and distribution.
Bobby Ramagwede, CEO of the Automobile Association (AA), adds that South Africa has sufficient fuel reserves, sourcing supplies from countries including Nigeria and Oman.
Abrahams cautions that potential future fuel price increases remain speculative as the country monitors the war’s full impact.
READ: SA food inflation slows in February, but fuel threat looms
"Even if the war ends sooner, it may still be too early to tell," he said..
Fuel costs, he adds, are another systematic expense that will eventually affect consumers.
“Households are already in survival mode,” Abrahams says.
He also warns against opportunistic price hikes by sellers preemptively raising prices to buffer future costs, which would place additional strain on already stretched consumers.