South Africa is facing record fuel prices as geopolitical conflicts and uncertainty in global energy markets drive up import costs, placing additional pressure on households and businesses.
In an interview with Paul Henley on BBC World’s Weekend programme, Dr. Carole Nakhle, CEO of Crystol Energy, discussed the country’s exposure to global energy shocks, the consequences for consumers and the policy measures governments can take to ease the burden. South African investigative journalist Zenele Mji also joined the discussion
Key takeaways:
South Africa’s heavy reliance on imported crude oil and petroleum products leaves it particularly exposed to global price increases driven by conflicts in the Middle East and between Russia and Ukraine.
Prolonged geopolitical tensions could keep fuel prices elevated, while the ability of consumers and businesses to adapt depends on how much economic and social pressure the country can withstand.
South Africa’s growing reliance on diesel imports from the United States, replacing supplies from the Middle East, introduces additional uncertainty as potential changes to US export policies could amplify market volatility.
Governments should prioritise targeted support for vulnerable households rather than blanket fuel subsidies or price protection measures, which can prove costly and create longer term economic challenges.
In countries with high levels of income inequality, such as South Africa, policymakers should consider differences in households’ ability to absorb higher energy costs when designing support measures.
The current energy crisis raises a broader question about whether rising fuel prices are creating new economic challenges or exposing longstanding structural vulnerabilities that earlier reforms could have addressed.
Related Comments
“Iran War: Asia most at risk in an LNG shortage“, Christof Rühl, Mar 2026
“US and Israel launch major military strikes on oil-rich Iran“, Dr Carole Nakhle, Feb 2026
