Ramaphosa Establishes High-Level Task Team as Fuel Prices Surge Amid Middle East Conflict

The newly established task team brings together key economic and infrastructure portfolios to deliver a coordinated, cross-sector response to rising fuel and food prices.

President Cyril Ramaphosa has moved to shield South Africans from the economic fallout of escalating conflict in the Middle East by establishing a multi-ministerial task team tasked with coordinating urgent interventions to stabilise fuel prices and protect the cost of living.

The announcement was made by Minister in the Presidency Khumbudzo Ntshavheni during a post-Cabinet media briefing, as global oil markets react to tensions involving Israel, the United States, and Iran—disrupting supply chains and driving up fuel costs worldwide.

Emergency Coordination to Contain Economic Impact

The newly established task team brings together key economic and infrastructure portfolios to deliver a coordinated, cross-sector response to rising fuel and food prices.

The task team will be chaired by Minerals and Petroleum Resources Minister Gwede Mantashe and includes:

• Finance Minister Enoch Godongwana

• Transport Minister Barbara Creecy

• Trade, Industry and Competition Minister Parks Tau

• International Relations and Cooperation Minister Ronald Lamola

• Agriculture Minister John Steenhuisen

• Electricity and Energy Minister Dr Kgosientsho Ramokgopa

• Forestry, Fisheries and the Environment Minister Willie Aucamp

• The Presidency

According to Ntshavheni, the team’s mandate is to mitigate the ripple effects of global oil shocks on South Africa’s economy.

“[The task team will] coordinate government’s response in a holistic manner to mitigate the impact on the cost of living, fuel and food security,” she said.

Immediate Relief: Historic Fuel Levy Cut

As part of urgent measures, Cabinet has approved a significant reduction in the general fuel levy, aimed at cushioning consumers from sharp price increases that took effect this week.

The intervention includes:

• A R3 per litre reduction in the fuel levy

• Petrol levy dropping from approximately R4.10 to R1.10 per litre

• Diesel levy decreasing from R3.93 to R0.93 per litre

This marks one of the most substantial fuel tax adjustments in recent years, reflecting the severity of the current global energy shock.

The move is expected to:

• Lower transport and logistics costs

• Ease pressure on food prices

• Provide short-term relief to households and businesses

Fuel Supply Remains Stable Despite Panic Buying

Amid reports of dry fuel stations in parts of the country, Ntshavheni reassured the public that South Africa’s fuel supply remains stable, attributing shortages to logistical disruptions rather than supply deficits.

“Dry fuel stations…are a result of logistics constraints due to panic buying and fuel hoarding,” she said.

Government has urged citizens to avoid panic behaviour, warning that stockpiling could worsen distribution challenges.

“We have got an adequate supply… South Africans are discouraged from panic buying and fuel hoarding,” she added.

South Africa’s Exposure to Global Oil Markets

Cabinet noted that while South Africa’s fuel system is currently stable, the country remains vulnerable to global supply disruptions, particularly as it relies on the Middle East for refined petroleum products.

The ongoing conflict has tightened global supply chains, increasing price volatility and placing additional strain on import-dependent economies.

Broader Economic Risks: Fuel, Food and Inflation

The establishment of the task team reflects growing concern about the secondary effects of rising fuel prices, including:

• Increased food prices due to higher transport costs

• Inflationary pressures across essential goods and services

• Reduced household purchasing power

• Potential slowdown in economic activity

By integrating portfolios such as agriculture, trade, and energy, government aims to anticipate and manage these cascading impacts.

Diplomatic Position: Call for Ceasefire

Beyond domestic measures, Cabinet has reiterated South Africa’s diplomatic stance, calling for an immediate ceasefire in the Middle East conflict.

“Cabinet called for an immediate ceasefire… and continues to monitor the situation closely,” Ntshavheni said.

The government has emphasised that global stability is critical not only for geopolitical reasons, but also for economic security.

A Test of Economic Resilience

The current crisis underscores South Africa’s ongoing exposure to global energy shocks and highlights the importance of:

• Diversifying energy sources

• Strengthening local refining capacity

• Enhancing strategic fuel reserves

• Accelerating the transition to alternative energy

Government Moves to Balance Relief and Sustainability

While the fuel levy reduction provides immediate relief, analysts note that it also reduces government revenue, raising questions about fiscal sustainability in the medium term.

The task team is therefore expected to balance short-term consumer protection with long-term economic stability, ensuring that interventions remain targeted and effective.

Coordinated Action at a Critical Moment

The creation of the ministerial task team signals a shift toward rapid, coordinated governance in response to global economic shocks.

As fuel prices remain volatile, the effectiveness of these interventions will be closely watched, with the stakes extending beyond energy to the broader cost of living and economic resilience.