South Africa’s record fuel prices are putting pressure on household budgets, and the pain does not stop when motorists leave the petrol station.
The latest increase, which took effect on 7 October, pushed 95 petrol to R30.25 a litre inland and R29.38 at the coast.
Diesel also jumped sharply, with the wholesale price rising to R31.95 for 0.05% sulphur diesel and R33.29 for 0.005% diesel inland.
With diesel playing a major role in transporting goods around the country, the increase could gradually filter through to other parts of the economy.
Here are 10 areas where South Africans could see the impact.
1. Groceries
Food is one of the biggest concerns. South Africa relies heavily on road freight to move food from farms and factories to distribution centres and supermarkets. Higher diesel costs therefore increase the cost of moving those goods.
Farmers can also face higher costs for machinery, while distributors and retailers face increased transport expenses. Not every increase will necessarily be passed directly to shoppers, but higher fuel costs add another source of pressure to food prices.
2. Taxi fares
Minibus taxi operators are already feeling the squeeze. SANTACO has warned that it has not ruled out further fare increases as operators deal with record fuel prices.
Taxi operators have only increased fares once this year, but higher fuel and other operating costs could eventually make further increases harder to avoid.
3. Bus and other public transport
Higher diesel costs can also affect bus operators and other forms of road-based public transport. Operators have to decide whether to absorb the additional cost or pass some of it on to passengers.
For commuters, that creates a particularly difficult situation because transport is often an unavoidable household expense.
4. Delivery fees
That online order arriving at your door still has to get there. Delivery companies use fuel-intensive vehicles to move parcels between warehouses, depots and customers.
Higher diesel and petrol costs can therefore put pressure on delivery charges, particularly for businesses that cannot absorb higher operating costs.
5. Restaurant and takeaway prices
Restaurants and takeaways can be hit from several directions. Food ingredients cost money to transport, while businesses also rely on deliveries and other logistics. Higher costs throughout the supply chain can eventually put pressure on menu prices.
Statistics South Africa has previously highlighted fuel as an important cost in the food supply chain, with increases potentially filtering through to restaurants, fast-food outlets and takeaway businesses.
6. Building and renovation costs
Construction materials do not magically appear at building sites. Cement, bricks, steel, timber and other materials often have to be transported by road.
Higher fuel costs can therefore increase the cost of moving construction materials, putting additional pressure on building and renovation projects.
7. Farming and fresh produce
Agriculture is particularly exposed to diesel prices. Farmers use fuel for tractors, harvesting equipment, irrigation and transporting produce.
That means higher diesel prices can increase production costs before food has even reached a supermarket.
8. E-hailing and private transport
Uber, Bolt and other e-hailing drivers are also affected by higher fuel prices. Drivers face a direct increase in the cost of every kilometre travelled, potentially putting pressure on fares or driver margins.
Private motorists face the same problem: a 50-litre fill of 95 petrol now costs R1 512.50 inland, before any other vehicle costs are considered.
The National Automobile Dealers’ Association estimates that the October increase alone adds R166.50 to a 50-litre 95-petrol fill.
9. Long-distance travel and holidays
The timing is particularly awkward for South Africans planning December travel. Higher fuel prices increase the cost of driving long distances, while higher operating costs can also affect other parts of the travel industry.
For families driving hundreds or thousands of kilometres during the festive season, fuel could take a much larger bite out of the holiday budget.
10. Other everyday goods and services
The biggest effect may ultimately be the one consumers notice least. Almost every product sold in South Africa has to be transported at some point.
Road freight accounts for more than 80% of South Africa’s land-based freight, meaning diesel costs can ripple through supply chains from ports and factories to warehouses and shops.
Businesses will have to decide how much of the higher cost they can absorb. Some may raise prices, while others may cut margins or look for ways to reduce fuel consumption.