Running on fumes: Ramaphosa hints at petrol price relief

President Cyril Ramaphosa says the National Treasury is “giving consideration” to potential interventions to ease the heavy burden of rising fuel prices on South African households and businesses.

The issue of the fuel price is a problem globally. We’re not the only country that is affected by rising fuel prices and of course there are various responses by various entities and governments and businesses and we are giving serious consideration on what needs to be done.

The price of petrol and diesel has leapt nearly 50% and 72%, respectively, since domestic prices started spiking in response to constrained global oil supply triggered by the US-Iran conflict. South Africa is particularly vulnerable, being a net importer.

The government is under pressure to provide relief, with calls for intervention coming from Cosatu, Business Leadership South Africa, the DA and the Fuel Industry Association.

However, the president warned that any subsidies could divert billions from essential public services, noting that the government had previously intervened when fuel prices increased, spending about R24 billion on a subsidy system.