Ramaphosa deploys ministers to tackle soaring fuel, food and electricity costs

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Cape Town – A team of Cabinet ministers has been tasked by Cyril Ramaphosa to urgently find ways to cushion the economy and consumers from rising electricity, food and transport costs, worsened by the ongoing Middle East conflict.

Presidency spokesperson Vincent Magwenya said the team will review aspects of the national budget, particularly fuel-related interventions, as the conflict continues to place pressure on global oil prices, SABC News reported.

“The conflict in the Middle East came at the back of the budget announcement. What now has to happen is we have to go back and re-look at some of those budget aspects around fuel and other related aspects. The president has put together a team of ministers that includes the Minister of Finance, Minister Tau, Minister Ntshavheni, Minister Lamola, Minister Mantashe to look at how we cushion the economy, but more importantly, we cushion consumers in light of this conflict. which nobody has a sense as to when it will end,” the report quoted  Magwenya as saying.

This comes as South Africa implements a temporary fuel tax relief measure, reducing the general fuel levy by R3 per litre for one month to help offset the surge in global oil prices linked to the Iran war.

The relief, however, comes at a cost of about R6 billion in lost revenue, which government says it plans to recover elsewhere to remain fiscally neutral.

Despite this intervention, fuel prices have increased sharply from 1 April. Petrol has risen by R3.06 per litre, while diesel has surged by more than R7 per litre — marking one of the steepest increases on record. Illuminating paraffin, widely used by lower-income households, has seen an unprecedented spike of up to 93%, making it the hardest hit.

Finance Minister Enoch Godongwana acknowledged uncertainty over how the shortfall will be funded, saying government is still working on adjustments to the budget. Broader measures are also being considered to support households and key sectors.

The price hikes follow a surge in global oil prices after disruptions to shipping routes, particularly through the Strait of Hormuz, amid conflict involving Iran. While South Africa has so far avoided widespread fuel shortages, some filling stations have reported running dry due to panic buying ahead of the increases.

Meanwhile, minibus taxi operators — South Africa’s primary mode of public transport — have warned that fare increases may follow, adding further pressure on consumers already grappling with rising living costs.

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