Dr Sheetal Bhoola is a lecturer and researcher at the University of Zululand, and director at StellarMaths (Sunningdale)
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The crisis in the Middle East has spurred irreversible financial burdens on people around the world. The centrality of oil, and the fact that South Africa is largely dependent on imports, has a detrimental impact on the daily living costs of South Africans.
As a nation, South Africa imports crude oil and refined fuel, the prices of which are often determined by global pricing systems and the dollar exchange rate. This, in turn, impacts what consumers pay per litre of fuel. The system also affects interest rates, inflation levels, global oil prices, and the rand-dollar exchange rate.
When the rand weakens, South Africans pay far more for essential commodities that rely on imports. The simultaneous increase in the cost of oil, coupled with a weakening currency, has a detrimental impact on the economy. In many cases, this impact can be prolonged, as South Africans continue to struggle to beat inflation and manage living costs amid a stagnating economy, high unemployment, and rising prices of necessities.
It has been estimated that fuel price increases could reach R3.00 or more per litre, with diesel rising by R4.00 or more per litre. This means that all food, particularly fresh produce—especially if not produced or manufactured locally—will increase in price to accommodate higher transportation costs. Vehicles with high fuel consumption may now become long-term financial liabilities for many South Africans.
Some countries have been proactive in supporting their populations during such external economic pressures. Sri Lanka, for instance, has introduced a policy where one day a week, such as Wednesday, allows the population the option to work from home. This raises the question of whether such a measure could be adopted in South Africa.
Other practical measures to reduce personal fuel consumption include the use of public and shared transport where possible. However, taxi and bus fares are also likely to increase, leaving lower-income individuals with even fewer resources. A major concern is the uncertainty surrounding how long inflation will persist, given global political instability and South Africa’s reliance on imported oil.
Employees who are required to commute during these challenging economic times are encouraged to adopt fuel-efficient habits, such as smooth acceleration, reduced idling, and maintaining steady speeds. Increased shipping costs and global oil volatility add to the cost per litre of fuel, making every effort to save fuel significant. Work-from-home or hybrid arrangements can reduce commuting and help individuals manage rising costs.
Such measures have already been adopted in several countries. Thailand, for example, has instructed civil servants to work from home to reduce energy consumption during the fuel crisis. The Thai government has also suspended overseas travel and encouraged reduced use of lifts in workplaces. Vietnam has similarly urged businesses to allow employees to work remotely to cut transport-related fuel consumption.
Pakistan and the Philippines have introduced a four-day workweek to reduce national fuel usage. In Pakistan, work-from-home policies have been implemented for approximately 50% of the workforce. Bangladesh has adopted remote learning, resulting in school closures to minimise energy usage—a measure previously trialled during the COVID-19 pandemic. Malaysia is currently evaluating work-from-home arrangements for civil servants.
The Southeast Asian region is heavily reliant on Middle Eastern crude oil and is considering contingency plans in the event of continued supply disruptions.
In the interim, South Africans can explore ways to minimise fuel expenditure, such as carpooling, combining errands, and using delivery or online services where possible. This situation may also encourage consideration of electric mobility, including its benefits and potential drawbacks.
Fuel costs are also influenced by taxes and levies, and South Africa could consider temporary fuel tax relief, as was implemented in 2022. This measure, previously supported by unions and economists, resulted in short-term fuel levy reductions. There may also be a need for measures to address potential rationing and supply disruptions.
Ongoing geopolitical tensions could lead to rationing and long queues, particularly given South Africa’s reduced refinery capacity and heavy reliance on imported refined fuel. Shipping disruptions via the Strait of Hormuz and the Suez Canal may further exacerbate the situation.
If conditions worsen, the government will need to implement measures that are practical and sustainable for all South Africans.
*The opinions expressed in this article do not necessarily reflect the views of the newspaper.*
DAILY NEWS