While the Middle East war is about to rocket fuel prices to record highs, the Motor Industry Staff Association (Misa) says it is deeply concerned about the possibility of another fuel price increase as a result of the conflict in Iran.
The United States (US) and Israel’s Middle East war is expected to drive petrol prices up by about R4 a litre and diesel by about R6 a litre, with concerns that if the conflict drags on, South Africa could even face a fuel shortage.
During the 1973 Arab-Israeli war, oil-producing countries stopped exports, resulting in queues at fuel stations across the world, including South Africa.
Fuel costs
Misa spokesperson Phakamile Hlubi-Majola said higher fuel costs are always passed directly onto consumers and workers, driving up the overall cost of living.
“One of the biggest monthly expenses for workers, and any increase in fuel prices pushes households further into financial hardship. Misa has consistently raised concerns about the government’s failure to review the country’s fuel pricing methodology, despite promises made in previous budgets.
“The lack of reform means that every increase compounds the challenges faced by ordinary South Africans, who are already struggling with high unemployment, rising food prices, and the daily costs of transport,” said Hlubi-Majola.
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Impact
Higher fuel prices also have a direct impact on the competitiveness of the motor industry.
Dealerships and workshops rely on affordable transport to deliver services, parts, and vehicles. When fuel costs rise, these businesses face higher operating expenses, which can lead to reduced profitability and, ultimately, threaten jobs.
Misda believes that protecting workers must be a priority in any discussion about fuel pricing.
Transport
Misa operations CEO Martlé Keyter said workers already spend a disproportionate share of their income on public transport.
“Each fuel price increase erodes their ability to provide for their families and undermines their quality of life. Misa cannot support a system in which workers are asked to bear the burden of rising costs without meaningful reform or accountability.
“We will continue to defend the interests of our members and call for urgent action to stabilise fuel pricing and protect South Africa’s workforce.”
Misa has urged government to prioritise affordability and transparency in fuel pricing and to ensure that workers are not left to “shoulder the consequences of policy failures”.
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