JOHANNESBURG - South Africans are facing record fuel prices from midnight, with 93 petrol rising to R30.25 a litre.
The increase is expected to put further pressure on already stretched households, while the taxi industry is considering whether higher operating costs will lead to fare increases.
Civil society organisation OUTA says the latest price shock highlights a deeper problem: South Africa’s lack of adequate fuel reserves to cushion consumers against sudden increases in international oil prices.
OUTA CEO Wayne Duvenage says the country has enough fuel reserves for only around two to three weeks, compared with previous levels of up to two or three months.
He says government needs to urgently address the country’s fuel security and consider ways to build a buffer against global oil price shocks.
"What we need is government to intervene as they have done in the past by reducing the fuel levy, which stands at R4.29 at the moment. And if they can reduce that by a couple of rand, it'll help," said Duvenage.
"But the problem is that every time they do that, they need to; government is broke. It doesn't have a lot of slush fund or spare capacity. So it's going to have to find that money elsewhere.
"But I think it is in the best interest of the economy and the motorists and the public in general that they do something for this price arc."