The Competition Commission of South Africa has issued a stern warning to businesses attempting to price gouge motorists in the lead-up to April’s enormous petrol and diesel price hikes.
The commission noted that the conflict between Iran and the United States has caused the global oil price to surge past $100 per barrel over the last two weeks.
As a result, the Central Energy Fund now estimates that petrol will go up by over R5 per litre this week, while diesel is facing a hike of R10 per litre.
However, this is still unconfirmed as of the time of writing as the Department of Mineral and Petroleum Resources has yet to announced the official fuel price adjustments that will take effect on Wednesday, 1 April 2026.
The commission warned that several forecourts in South Africa will take advantage of consumers confused by the constant stream of updates surrounding fuel prices.
“There is a distinct risk that unscrupulous businesses will exploit the sudden surge and uncertainty in fuel prices by engaging in price gouging,” it said.
In this context, the commission defined price gouging as raising fuel prices beyond what is warranted by the official fuel cost increases.
“This risk is prevalent for unregulated fuels such as diesel retail prices and jet fuel, and oil-based products such as nitrogen-based fertilisers and plastics,” it said.
“Fuel-intensive services such as air, land and sea transport and logistics, and all other products and services that rely on these inputs, particularly food products and delivery services, are also at risk.”
The commission further warned that South African case law sets a clear precedent for how businesses should handle fuel cost increases.
This includes the following:
- Businesses may not raise prices in anticipation of future fuel cost increases; they may raise prices only when they experience actual increases in fuel costs.
- Businesses that experience fuel cost increases may only raise prices in proportion to those increases.
- In effect, these two conditions mean that product or service margins after the surge in fuel prices should not exceed those before the fuel price increase.
“Furthermore, once fuel costs decline, product or service prices should decline immediately,” it stated.
“Businesses that increase prices in advance of any actual fuel cost increases or increase prices by far more than their actual cost increases, risk being prosecuted and found guilty of price gouging.”
This also applies to companies that continue to charge higher rates after the oil price shock has subsided.
“The Competition Commission calls on all businesses in South Africa to comply with the law and avoid price-gouging behaviour during this period of oil price volatility.”
Motorists can report price gouging
As the war in the Middle East rages on and oil prices remain volatile, the Competition Commission has urged the public and companies to report entities engaging in fuel price gouging.
If an individual suspects that a business is price gouging customers, they should contact the commission to investigate.
“To assist with the investigation, please provide your name and contact details, as well as the name and location of the business suspected of price gouging,” it said.
Those who report price gouging must also name the product or service whose price has allegedly been hiked, as well as the name and location of the business suspected of price gouging.
“The public and businesses can lodge a complaint via email to [email protected] or via WhatsApp at 084 743 0000.”
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