5 May 2026

SUMMARY: The Association of Mineworkers and Construction Union (AMCU) states that the current fuel price crisis is not only the result of global pressures, but a direct consequence of long term policy failures that have weakened state capacity, eroded the social wage, and increased dependence on imported fuel and private provision. Within weeks, South Africans have been hit by cumulative increases of more than R6,00 per litre for petrol and over R13,00 per litre for diesel, driving up the cost of transport, food, and basic living. AMCU rejects claims that these increases are “unavoidable” and argues that government has failed to act decisively to protect the economy. The Union calls for urgent state intervention, including further fuel levy reductions, targeted support for key sectors, and the use of strategic reserves, alongside a coordinated programme to rebuild public infrastructure, restore passenger rail, reopen and expand refineries, and invest in domestic fuel production. AMCU warns that failure to act will deepen inflation, intensify wage pressures, and place an even greater burden on the most vulnerable in society. 

South Africa is now facing a second major fuel price increase within weeks, following the sharp increases implemented in April 2026. In April, petrol increased by R3,06 per litre, while diesel rose by between R7,37 and R7,51 per litre. The country is now facing a further increase of approximately R3,27 per litre for petrol and between R6,19 and R6,21 per litre for diesel. Within a short period, petrol prices have therefore increased by roughly R6,30 per litre, and diesel by approximately R13,50 per litre, placing sustained pressure on transport costs, food prices, and broader economic activity. 

“This thing is hitting people again and again. It is not a once off anymore. It is now a pattern, and people are feeling it every day. Every increase goes straight into food, transport, and daily life”, said AMCU President Joseph Mathunjwa. 

The current fuel price trajectory reflects both external pressures and internal policy choices. Rising global oil prices, geopolitical tensions, and currency movements have contributed to the increases, but the extent of the impact in South Africa is shaped by structural features of the domestic economy, including reliance on imported refined fuel and the weakening of state capacity in key sectors. 

“People are told this is coming from outside, but they are the ones who must carry it here at home. You cannot just explain the problem. You must show how you are protecting people from it”, said Mathunjwa. 

Government, through the Minister of Mineral and Petroleum Resources, Gwede Mantashe, has continued to describe the increases as “unavoidable”, citing global market conditions. In recent public statements and media engagements, the Minister has attributed the increases to rising international oil prices, geopolitical tensions affecting global supply, and movements in the exchange rate. He has also referred to the structure of South Africa’s fuel pricing system, including its reliance on import parity pricing linked to international benchmarks, as a factor that transmits global price movements into the domestic market. In this context, the Minister has indicated that government’s immediate focus has been on maintaining fuel supply and responding to these external pressures, while acknowledging the impact of higher prices on consumers and the broader economy. 

“When you say it is unavoidable, you are saying nobody must answer. That cannot be correct. Leadership must answer. You cannot point to global prices, to the rand, to the system, and then stop there. Those things are real, but the question is what you do about them. Government cannot hide behind the system when people are suffering”, said Mathunjwa. 

Across the world, governments are implementing measures to mitigate the impact of rising fuel and energy costs on their economies. In France, fuel subsidies and targeted compensation measures are being used to support households and key sectors. In Germany, authorities have implemented fuel tax reductions and broader energy relief packages. In India, excise duties on petrol and diesel have been reduced. In United States, strategic oil reserves have been released and tax relief measures introduced at various levels of government. In Nigeria, fuel subsidies continue to be used to limit the pass through of global price increases. 

“Other governments are not just explaining the problem, they are acting on it. They are cutting taxes, subsidising fuel, and using what they have to reduce the pressure. Here at home, people are told to accept it. That is not leadership. What is being done here?”, said Mathunjwa. 

South Africa’s exposure to global fuel price volatility is linked to structural features of the domestic energy system, including reliance on imported refined fuel, the decline of local refining capacity, and reduced strategic buffering capacity. 

“We weakened ourselves. We closed refineries, we sold reserves, and now we depend on others. Then when the shock comes, people must suffer. That is the result of those decisions”, said Mathunjwa. 

Prior to the recent escalation in global geopolitical tensions, the inflation outlook in South Africa had shown signs of moderation, with expectations that price pressures would gradually ease. However, the current fuel price increases are expected to reverse that trend, placing upward pressure on inflation through higher transport and input costs. This is likely to feed directly into the food basket and broader cost of living, with ordinary South Africans facing increased prices for basic goods and services in the months ahead. 

“We were already struggling, and now everything is going up again. When fuel goes up, food goes up, transport goes up, and life becomes more expensive immediately. That is the reality for ordinary people”, said Mathunjwa. “In the months ahead, trade unions will face difficult wage negotiations. Rising living costs will have to be met with equal increases in pay, especially for the most vulnerable and downtrodden workers”, he added. 

Government has a range of immediate policy tools available to cushion the impact of rising fuel prices on the economy and the cost of living. These include further reductions in the general fuel levy, the introduction of targeted fuel support measures for key sectors such as public transport, food production and logistics, and the temporary expansion of existing diesel rebate mechanisms to limit the pass through of fuel costs into essential goods and services. Such measures can provide short term relief while broader structural adjustments are pursued. 

“You cannot say there is nothing that can be done. There are tools available, and they must be used. When fuel goes up like this, it hits transport, it hits food, and it hits every household. If government does not step in, then people are left to carry the full weight of something they did not create”, said Mathunjwa. 

In addition to short term relief, government can utilise strategic fuel reserves to moderate price spikes during periods of volatility, while simultaneously rebuilding and strengthening those reserves over time. This approach provides a buffer against external shocks and can be combined with coordinated fiscal measures to stabilise key sectors of the economy. 

“Reserves are there for a reason. They are there for times like this. You cannot have reserves and then not use them when the pressure comes. People are under strain now, and they need to see that government is using every tool available to protect the economy and to protect them”, said Mathunjwa. 

South Africa’s vulnerability to rising fuel prices is further compounded by the decline of state led infrastructure systems that historically formed part of the social wage and reduced the cost of living. Public transport networks, including rail and bus systems, have deteriorated significantly over time, increasing reliance on private and road based transport and, in turn, fuel consumption. These services were designed to be publicly owned and funded in the public interest, and their erosion has removed a critical buffer within the economy. 

“We used to have infrastructure that formed part of the social wage. Transport that was built to serve the nation, not to make profit. Today, everything is pushed into private hands, and everything depends on fuel. These services must be rebuilt, and they must be public, not private”, said Mathunjwa. 

The erosion of state led industrial capacity has also been reflected in the restructuring and privatisation of key strategic assets over time. In 2001, Iscor was restructured and effectively privatised, with its steel operations later becoming part of ArcelorMittal South Africa. Over the same period, entities such as Eskom experienced policy shifts in the late 1990s and early 2000s that delayed new generation investment, while Transnet and the Passenger Rail Agency of South Africa (PRASA) underwent restructuring alongside declining investment in passenger rail infrastructure. These developments have contributed to increased costs, reduced resilience, and a growing dependence on private provision and imported inputs. 

“These were not small decisions. They changed the structure of the economy. We moved away from a system where the state was building and supporting industry, to one where key sectors were left to the market. Today we see the result, higher costs, weaker infrastructure, and a country that is exposed when there is a crisis”, said Mathunjwa. 

In addition, South Africa’s long term exposure to global fuel markets reflects a decline in domestic production and refining capacity. Several refineries have been closed or allowed to fall into disuse, increasing reliance on imported refined fuel. The restoration and expansion of refining infrastructure, together with renewed investment in coal to liquid fuel production, would strengthen energy security and reduce vulnerability to global price shocks. 

“We have closed refineries in this country and then we ask why we are exposed. Those refineries must be rebuilt. We have coal, we have the knowledge, and we have the experience. Government must invest again and expand that capacity so that we are producing more of our own fuel”, said Mathunjwa. 

These interventions would not only address energy security but would also have significant employment implications. The rebuilding of refineries, expansion of coal to liquid capacity, and restoration of public transport infrastructure would create large scale direct and indirect employment opportunities across the economy. 

“This is not only about fuel. It is about jobs. When you rebuild rail, when you rebuild refineries, when you invest in production, you are creating work for thousands of people. Government must use this moment to rebuild and to create jobs at scale”, said Mathunjwa. 

The impact of rising diesel prices is particularly significant for sectors such as mining, agriculture, and logistics, where fuel is a core operational input, with implications for employment, production costs, and supply chains. 

“When diesel goes up like this, it is not just a number. It affects jobs, it affects production, it affects everything”, said Mathunjwa. 

AMCU notes that sustained intervention is required to address both immediate pressures and longer term structural challenges. 

“This is about whether government has a plan or not. Right now, it does not look like there is one. And if there is no plan, people will continue to suffer”, said Mathunjwa. 

“People cannot continue to carry the cost of decisions they did not make. Government must act, and it must act in a way that protects the economy and the working class. Anything less is a failure, and it cannot continue”, Mathunjwa concluded. 

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For more information or media interviews, contact AMCU President Joseph Mathunjwa.