Civil rights organisation AfriForum has urged Finance Minister Enoch Godongwana to act swiftly to ease the pressure on South Africa’s economy and consumers, as escalating conflict in the Middle East sends oil prices soaring.

The recent outbreak of tension in Iran has triggered a global energy crisis, with oil prices surging more than 40% in a short period. Economists warn that prices could soon reach an all-time high. The knock-on effect is clear: higher fuel costs will ripple through the economy, pushing up the price of almost every other product due to increased transport costs.

In a letter to Minister Godongwana, AfriForum points out that similar action has been taken before. In March 2022, the Minister, alongside the Mineral Resources and Energy Minister Gwede Mantashe, announced a temporary R1,50 per litre cut in the general fuel levy to ease the burden on households following the Russia–Ukraine conflict.

“AfriForum, together with many economists, believes this is the right way to cushion the impact of this latest crisis,” wrote Ernst van Zyl, AfriForum’s Head of Public Relations.

Van Zyl emphasised the far-reaching impact of rising fuel prices: “People often underestimate the effect of a fuel price hike on the price of goods. Raw materials need to be transported to become intermediate goods. Intermediate goods are then transported to become final products, which must be delivered to consumers. Every step becomes more expensive if the fuel price rises.”