Prof Raymond Parsons, economist at the North-West University Business School, described the situation as a “triple shock” set to hit the economy at the start of April.
Image: Matthews Baloyi/Independent Newspapers
South Africans are bracing for a fresh wave of financial pressure as electricity tariff increases, rising fuel costs and global uncertainty converge, raising fears of higher inflation and reduced household spending power in the months ahead.
Eskom on Monday confirmed that it will implement electricity tariff increases approved by the National Energy Regulator of South Africa (Nersa), with an average hike of 8.76% for direct customers taking effect from 1 April 2026. Municipal bulk buyers are set to introduce their own increases, averaging 9.01%, from 1 July.
The announcement comes at a time when fuel prices are also expected to rise sharply in April, driven in part by higher global oil prices linked to tensions in the Middle East.
Analysts on Tuesday warned that the combined effect could deliver a significant blow to both consumers and businesses.
Mervyn Abrahams, director at Pietermaritzburg Economic Justice and Dignity Group (PMBEJD), said the tariff increases will have a direct and painful impact on daily life.
“Consumers are already under immense pressure and given that electricity is a central component in people's lives for cooking or preparing water for bathing purposes. So an increase means that consumers are going to continue suffering,” he said.
“There is not much that consumers can do at the present moment because poor households and even middle-income families do not have much in reserves owing to debts. Our appeal is for the government to develop and swiftly roll out a plan that will cushion the most vulnerable households and ensure food security under these very trying times.”
Prof Raymond Parsons, economist at the North-West University Business School, described the situation as a “triple shock” set to hit the economy at the start of April.
In addition to electricity tariffs, consumers will face higher fuel prices, increases in the Road Accident Fund levy, and carbon tax adjustments. These factors, combined with rising global oil prices, are expected to push up inflation at a time when South Africa’s economic recovery remains fragile.
“This will be a triple shock to business and consumers at a moment when South Africa’s economic recovery still needs to be strengthened,” he said.
“Although recent inflation has gotten close to the Reserve Bank’s 3% inflation target, the magnitude of the combined effect of what is expected on April 1 will inevitably mean future cost-inflation.”
He added that the Monetary Policy Committee is now expected to adopt a cautious “wait-and-see” approach at its upcoming meeting, reducing the likelihood of an interest rate cut in the near term.
The rising cost environment is also expected to erode disposable income, placing additional strain on already stretched households. Parsons urged government to consider targeted interventions to mitigate the impact, particularly for lower-income consumers.
Efficient Group chief economist Dawie Roodt criticised the scale of Eskom’s tariff increase, arguing that it far exceeds the country’s inflation target.
“This was completely out of line. We have inflation targets of 3% in South Africa. It is totally unacceptable for a State-Owned Enterprise to increase anything above 3%. Nine percent is just completely and totally unacceptable,” Roodt said.
“This will add to upward pressure on inflation. On top of that, we will have further upward pressure because of the war in the Middle East. So the average consumer in South Africa is facing a very bleak next couple of months.”
Allison Schoeman, chairperson of the eThekwini United Ratepayers, Business and Civics Organisation (EURBCO) and vice-chair of the Bluff Ratepayers and Residents Association (BRRA), said the increases highlight a growing disconnect between policymakers and the realities faced by ordinary South Africans.
“These increases do not exist in isolation. They are cumulative. They compound. And they are crushing,” he said. “The consequences are no longer theoretical—they are visible, immediate, and devastating.”
Andile Zulu, energy democracy program officer at the Alternative Information Development Centre, argued that the tariff hike will deepen energy poverty in a country already grappling with high unemployment and slow economic growth.
“Government denying Eskom the ability to curtail its primary energy costs and the drive to recover operational costs from a largely poor population, in an environment of low-economic growth, is both unjust and unsustainable.”
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