South Africa's long-standing system of adjusting fuel prices once a month could be reviewed following a proposal to introduce bi-weekly price changes in response to volatile global oil markets.
The proposal was tabled during a meeting of Parliament's Portfolio Committee on Mineral and Petroleum Resources, where members discussed ways to reduce the impact of sharp fuel price increases on consumers and businesses.
Committee member Fasiha Hassan-Duma suggested that reviewing fuel prices every two weeks, rather than once a month, would allow government to respond more quickly to fluctuations in international oil prices and lessen the impact of sudden price shocks.
The discussion follows a period of significant fuel price volatility. After conflict erupted in the Middle East at the end of February, petrol prices increased by R6.53 per litre between March and May, while diesel prices rose by R13.43 per litre.
Although diesel prices fell by R2.62 per litre in June, petrol increased by a further R1.43 per litre following the expiry of temporary Treasury relief measures.
July brought some relief for motorists, with petrol prices decreasing by R1.96 per litre and diesel by R3.59 per litre, despite the complete withdrawal of Treasury's fuel levy relief.
Even after the latest reductions, petrol remains around R6 per litre more expensive than it was before the conflict, while diesel prices are still more than R7 per litre higher. Early projections suggest August could see further declines, although prices are expected to remain above pre-conflict levels.
The sharp rise in fuel costs has placed additional pressure on households and businesses, particularly as South Africa relies heavily on diesel for freight transport, agriculture and logistics.
Higher fuel prices have contributed to increased food production and transport costs, adding to broader inflationary pressures.
Small and medium-sized businesses have also felt the strain. According to the Business Partners SME Confidence Index, many businesses have shifted their focus from expansion to managing rising operating costs and ensuring their survival.
The Fuel Retailers Association has also warned that sustained fuel price shocks threaten the viability of petrol stations due to fixed retail margins, higher working capital requirements and declining fuel sales.
During the parliamentary meeting, committee members noted that increases in fuel prices have a ripple effect across the economy, driving up the cost of food and other essential goods, with low-income households bearing the greatest burden.
Members also criticised government's communication during the recent fuel price increases, arguing that uncertainty contributed to panic buying and unnecessary pressure on fuel supplies.
Hassan-Duma said that while South Africa cannot influence international oil prices, it can improve how it responds to rapid market changes.
"We understand that this is a global problem, an international one, but there are a number of interventions that we can put in place that I think we need to push for," she said.
She proposed replacing the current monthly adjustment system with reviews every two weeks, allowing prices to be adjusted more gradually as global oil markets fluctuate.
"Instead of increasing diesel by R10 or R7, or whatever the case may be now, you don't do it immediately. You don't look at it once a month, you look at it every two weeks," Hassan-Duma said.
She argued that a staggered approach would enable government to respond more quickly if international oil prices eased, potentially reducing the impact of large price increases.
"I know this will create some challenges, but what it does do is it manages the problem a little bit better, it creates a staggered approach, and it shows that you have a government that is very responsive to what people are going through," she said.
Hassan-Duma added that a more flexible pricing model could help ease the cost-of-living pressures facing working-class and low-income South Africans.
The proposal remains at discussion stage, and no decision has been taken on whether South Africa's fuel pricing system will be changed. The Department of Mineral and Petroleum Resources has not yet indicated whether it will consider implementing bi-weekly fuel price adjustments.