South Africa is bracing for significant fuel price increases following escalating tensions in the Middle East and military actions involving the United States, Israel, and Iran. Data from the end of the first week of March indicates substantial under-recoveries for both petrol and diesel prices, potentially impacting consumers in the coming months.
The price hikes are a direct consequence of the recent hostilities, which included military strikes launched by the USA and Israel against Iranian targets. Reports indicate that Ayatollah Ali Khamenei was among those killed in the strikes, prompting a retaliatory response from Iran. Iranian forces launched attacks on several Arab nations hosting US military bases, including Qatar, the UAE, and Kuwait.
As of mid-March, petrol prices are showing an under-recovery of R2.40 per litre, although diesel prices are in the red by approximately R4.50 per litre. Specific projected increases are as follows:
- Petrol 93: increase of R2.28 per litre
- Petrol 95: increase of R2.41 per litre
- Diesel 0.05% (wholesale): increase of R4.39 per litre
- Diesel 0.005% (wholesale): increase of R4.50 per litre
- Illuminating paraffin: increase of R6.60 per litre
Beyond the immediate economic impact, the conflict has prompted the South African Department of International Relations and Cooperation to urge its citizens in the Middle East to evacuate, with over 6,400 South Africans having registered their presence in the region as of March 6th. Authorities are prioritizing assistance to those seeking to leave, acknowledging that consular support may become limited as the conflict intensifies.
Eugene Herbert, CEO of MasterDrive, emphasized the importance of fuel conservation in light of the economic uncertainty. He highlighted several often-overlooked factors influencing fuel consumption, including the quality of engine oil. “Using oil with the wrong viscosity will put pistons and other moving parts under more pressure, which requires more fuel,” Herbert stated, advising drivers to consult their vehicle manuals for the correct oil type.
Herbert also pointed to tyre condition as a significant factor, noting that worn tyres reduce traction and increase fuel consumption. He further advised against short trips, as vehicles are less efficient when not fully warmed up, and stressed the importance of regular car servicing, including the replacement of spark plugs and filters. “Do not neglect to replace faulty parts or neglect to service your vehicle on time,” he cautioned.
Driving habits also play a crucial role, with improper gear selection, harsh acceleration, and poor clutch control contributing to increased fuel use. Herbert concluded, “Every effort one makes to conserve fuel makes a difference. When all of these are combined, the effect will be even greater.”
Israel has sharply criticised South Africa for co-chairing a meeting of the Hague Group on March 4th, accusing Pretoria of siding with Iran and pushing an anti-Israel agenda. The meeting focused on accountability and the enforcement of international law in Palestine, with forty states participating. South Africa’s Deputy Minister of International Relations and Cooperation, Alvin Botes, represented the country at the meeting.
The escalating tensions come as South Africa faces economic repercussions from the conflict, with potential impacts on trade and investment. According to reports, Africa’s unity is being strained by global power politics, with different regions taking varying stances on the conflict. The situation remains fluid, and the long-term economic and political consequences for South Africa are yet to be fully determined.
