SOUTH AFRICA’S FUEL PRICE CRISIS

The Durban Chamber of Commerce and Industry NPC welcomes the reduction of the fuel levy by R3 per litre, announced with the fuel price increase set to take effect tomorrow, 1 April 2026. This escalation is driven by the ongoing conflict involving Israel, the United States, and Iran. 

As organsied business, we fully support measures such as the reduction of the fuel levy and, where feasible, the implementation of flexible working hours for staff, as we believe these interventions can provide temporary relief and act as a buffer until comprehensive crisis management plans are established.

The Durban Chamber of Commerce and Industry NPC believes that South Africa’s heavy dependence on imported crude oil leaves us vulnerable to immediate fuel price hikes driven by global crude volatility. Whilst we acknowledge the reduction in the fuel levy, the impact on business is still devastating, as petrol is used across all sectors, not only in transport. The agriculture sector is exposed through both fuel and the broader value chain, manufacturing is directly affected, and public transport costs will rise; consumers will inevitably face increased prices.

Durban, known for its large logistics sector, is particularly vulnerable. Fuel increases magnify the impact here, turning it into a broader economic challenge that affects trade. The ripple effects will spread across industries, directly raising the cost of imports and exports and undermining South Africa’s competitiveness.

At a time when businesses are striving to recover from economic pressures, rising fuel costs compounded by the impact of the war place an undue burden on all enterprises. While large businesses may absorb the shock, small and medium-sized enterprises (SMEs), already struggling to make ends meet, are bearing the brunt. For many, this could even lead to closure.

This situation has created significant uncertainty, with expectations that inflation will rise, driven by increasing fuel costs, electricity costs, and transport expenses, while salaries remain stagnant. As a result, consumers and businesses are burdened with reduced purchasing power, further straining households and businesses, which is not economically sustainable for livelihoods.

The consequences for business confidence and investment into both Durban and South Africa are severe. We are already witnessing panic buying and fuel shortages, which only magnify the pressure on supply chains and consumer sentiment.

As organised business, we believe that South Africa alone cannot withstand the full impact should the war continue. We urgently require a clear plan from government outlining how the country will navigate this crisis. Decisive action and clarity are essential to restore confidence and provide transparency on what buffers are in place to protect both government and citizens.

SOUTH AFRICA’S FUEL PRICE CRISIS