According to the latest data from the Central Energy Fund, petrol and diesel prices are lined up for hikes of around R1.30 per litre and up to R1.50 per litre, respectively while higher global oil prices – driven by conflicts and tensions in the Middle East and the impact on demand – as well as a generally weaker rand, trading around R19 to the dollar, have dealt a double-blow to price recoveries, leading to the likely hikes.

Economists, meanwhile, expect that Finance Minister Enoch Godongwana is likely to announce an inflation-linked increase in fuel takes during his budget speech this week, after skipping hike for two years in a row.

While fuel price hikes are painful enough for motorists and those who use public transport, the hikes send shockwaves across the retail sector – particularly the freight businesses that deliver goods throughout the country.

Road Freight Association (RFA) CEO Gavin Kelly said, "Given the high cost of fuel, companies in the sector will likely have to increase their pricing to cover these increasing costs which will invariably feed into the entire value chain, any gains achieved in mid-2023 are steadily being eroded".

Kelly furthermore revealed that fuel is fast crossing the 50% mark in daily transport operating costs, which remains a high operational input cost for any company or business that requires goods to be transported to manufacturing, processing, packaging, taking, distribution or retail operations.

"That cost will in most cases be borne by the consumer who will continue to feel inflationary price pressure in the short-to medium-term," Kelly added.

Kelly also believes that in the short term, general transport costs will rise from food to fuel, from clothing to electronic goods and everything in between.