Neelam Rahim | neelam@radioislam.co.za
3-minute read | 12 March 2026

Oil Price Spike Amid Iran Conflict Could Push SA Fuel to Record Highs.

South Africans may soon face significant fuel price hikes as global oil prices climb sharply, raising concerns about inflation and increased living costs.

Oil prices have surged to $110 per barrel for the first time since 2022, sparking fears of a global inflation crisis similar to the economic fallout that followed the Russia–Ukraine conflict. The rising oil price, combined with a weakening rand, could place additional pressure on already strained households and industries.

Experts warn that the country could face a “double blow” as international price pressures coincide with upcoming fuel tax increases announced during the national budget.

According to the latest adjustments, motorists will face an additional 21 cents per litre in fuel taxes. The increase includes nine cents in the general fuel levy, five cents in the carbon levy, and seven cents for the Road Accident Fund levy.

Speaking to Radio Islam International, CEO of the Road Freight Association Gavin Kelly warned that the impact will be felt across the economy.

“It’s actually something we haven’t seen for a long time,” Kelly said. “If we have this sort of increase that they’re talking about… it’s really going to put a lot of pressure on transporters.”

He explained that the freight sector will be particularly affected as around 80% of goods in South Africa are transported by road, making the industry highly dependent on fuel.

“Those vehicles use fossil fuels. There’s unfortunately no alternative at this stage,” he said, noting that electric, hydrogen, and solar-powered transport technologies are still in early stages of adoption.

Kelly cautioned that rising fuel costs will inevitably translate into higher prices for consumers.

“There’s going to be pressure on all the goods moved by road transporters will have to increase their rates to remain viable and sustainable, and you and I are going to feel that sooner rather than later.”

Concerns have also been raised about fuel supply reserves in the country. While South Africa typically maintains approximately six months of fuel stock, Kelly noted that there has been little communication from authorities regarding the current status of strategic reserves.

“We haven’t had any word from the Central Energy Fund or the Department of Energy as to where our stocks are,” he said.

Although government has limited control over international oil prices and currency fluctuations, calls are growing for intervention on the aspects it can influence such as suspending fuel levies during periods of economic strain.

Kelly suggested a long-term strategy that includes cushioning consumers from fuel price shocks, expanding synthetic fuel production, and accelerating investment in alternative energy technologies.

“Any rational person could argue that this is something we are going to see more and more,” he said, warning that geopolitical tensions could increasingly disrupt global energy supply routes in the future.

As global oil markets remain volatile, economists caution that rising fuel prices could ripple through the broader economy, driving up transport costs, food prices, and inflation in the months ahead.

Listen to the full interview on Sabahul Muslim with Moulana Junaid Kharsany and Gavin Kelly.