Workers across South Africa are being pushed into poverty by fuel price increases that have left official inflation figures looking meaningless, the Motor Industry Staff Association has warned.
While the country’s headline inflation rate sits at 4.3%, the cost of filling a tank has surged far beyond what wage increases can cover. A litre of 95 unleaded petrol now costs R26.92 inland and R26.05 at the coast, compared to R15.16 and R17.62 respectively just five years ago. That represents a 77% jump.
Diesel prices tell an even grimmer story. Inland drivers now pay R30.05 per litre, up from R12.46 in 2020, a massive 141% increase over the same period.
Global diesel prices hit record highs
The crisis is not confined to South Africa. Diesel prices in the United States hit a record high on Friday, reaching $5.85 per gallon, up from $3.71 a year ago, according to the American Automobile Association. The surge follows disruption to global oil supplies after US-Israeli strikes targeting Iran in late February prompted Tehran to block the Strait of Hormuz, a critical waterway for energy transit. American farmers are facing surging fertilizer and diesel costs during planting season, while the Independent Grocers Alliance estimates fuel-related costs account for 15% to 30% of total costs for some food products.
Electricity and food costs compound the crisis
Fuel is not the only pressure point in South Africa. Electricity tariffs climbed 8.76% for Eskom customers in April and 9.01% for municipal users in July, roughly double the inflation rate. Food prices continue to climb, with the average household food basket now costing R5 479.80 according to the Pietermaritzburg Economic Justice and Dignity Group.
The combined effect is catastrophic for low-income families. Data from the group shows transport and electricity costs alone eat up 65.8% of a minimum-wage worker’s monthly income before a single rand is spent on food. For a family of four, that leaves just R413.34 per person, nearly half the national food poverty line.
Workers facing impossible choices
Martlé Keyter, chief executive officer for operations at MISA, said workers are facing impossible decisions. “Our members are not overspending. They are drowning,” Keyter said. “Every gain a worker has made in wage increases in recent years has been quietly absorbed by the pump, the prepaid electricity meter and the till.”
She said families are being forced to choose between transport to work, electricity at home and food on the table.
Union calls for urgent fuel price reform
MISA is calling for government to urgently reform the fuel price structure, including the levies and margins built into every litre. “Workers and their families cannot keep carrying the burden of a broken system,” Keyter said.
The union says the current pricing model needs a complete re-evaluation to reflect the reality facing ordinary South Africans.
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