The cost of living crisis is expected to worsen over the next few months, with economists warning that rising fuel and electricity prices will place even greater strain on already struggling households.
Programme manager and economist Mervyn Abrahams from the Pietermaritzburg Economic Justice and Dignity Group says the full impact of recent increases has not yet been felt- but will soon hit consumers.
“The increases in fuel costs will start to come through in the next three to four weeks, particularly in food prices and transport,” he said.
Abrahams explained that the recent 8.76% electricity tariff increase by Eskom is already eroding household income.
“If a household uses around 350 kilowatt-hours of prepaid electricity, they could see an increase of about R103.53 per month. That is nearly half of the recent national minimum wage increase,” he said.
He warned that the combined effect of these increases will force families to make difficult decisions.
“Households will have to cut back on electricity, food, and transport. Low-income families simply do not have savings to absorb these shocks,” he added.
The warning comes as motorists across Durban rushed to filling stations ahead of the petrol and diesel price increases which took effect on 1 April. Long queues were reported, with some stations running out of fuel amid panic buying.
Residents say the pressure is already being felt.
“We are already struggling with groceries and electricity. Now petrol is going up again. How are we supposed to survive?” said one Chatsworth resident.
Abrahams said fuel price increases will affect consumers in two major ways — rising taxi fares and higher food prices due to increased transport costs.
“Food in South Africa is transported over long distances, for example from Limpopo to Durban. Increased fuel costs raise logistics costs, and these are passed on to consumers,” he explained.
He also raised concern about the sharp rise in paraffin prices, which affects poorer households.
“Paraffin has increased significantly, and there has been no targeted relief. These households are under the most pressure,” he said.
President Cyril Ramaphosa has acknowledged the growing crisis, noting that global economic pressures are driving up fuel prices and the overall cost of living.
On the question of relief, Abrahams said the government has taken some steps to cushion the blow, particularly through reducing the fuel levy.
“The petrol price increase could have been around R6 per litre, but the government reduced it by about R3 through the fuel levy. While this has helped, the relief is not enough to offset the broader impact of rising costs,” he said.
He cautioned that meaningful short-term relief remains limited.
“At this stage, there is no significant relief in sight. Households should prepare for continued pressure as prices are expected to rise further,” he warned.
