Recent sharp increases in electricity tariffs, fuel prices, and illuminating paraffin have intensified the cost-of-living crisis in South Africa, with the heaviest impact falling on low-income households, informal settlement residents, and the working poor, according to participants in a panel discussion.
The discussion followed the release of the Competition Commission’s latest Cost of Living Report, which highlights alarming rises in essential services. Electricity prices have surged by approximately 85% and water by around 68–86% over the past five to six years, far outpacing general inflation.
Abahlali baseMjondolo’s Thapelo Mohapi, the Pietermaritzburg Economic Justice and Dignity Group’s Sibusiso Mboto, and Black Sash’s Abigail Peters addressed the struggles faced by residents, particularly those relying on paraffin for cooking, heating, and lighting in informal settlements and rural areas.
Mohapi pointed out that the burden extends beyond the unemployed to millions of workers earning poverty-level wages. Many are seasonal employees without guaranteed permanent work, and even those with jobs often cannot afford basic daily needs. He noted high unemployment persisting after the COVID-19 pandemic, widespread homelessness, and the fact that many wage earners are ineligible for social grants despite incomes insufficient to support families.
A basic food basket for a family of five now costs more than R4,500, Mohapi said, describing the situation as dire. He highlighted that recent electricity hikes of around 9% combined with the latest fuel and paraffin increases disproportionately affect the poor, who “work just to wake up every day” without earning enough for a decent life.
The General Industries Workers Union of South Africa issued a statement emphasizing that the paraffin price surge crushes not only informal settlement dwellers but also working families. Critics noted that in 2020, the then-chair of the ANC economic transformation committee (now Minister of Finance) had encouraged a shift toward cheaper alternatives like paraffin and gas. Five years later, that alternative has nearly doubled in price overnight—with wholesale illuminating paraffin rising sharply by R11.67 per litre—without corresponding relief measures or price caps, unlike some cushioning provided for petrol.
Peters described the lack of targeted relief for paraffin users as “completely unfortunate,” stressing that the poor consistently bear the brunt of price hikes. She said vulnerable households have no fallback options and that government missed an opportunity to provide meaningful cushioning. Paraffin is often used in conditions that heighten risks of fires, injury, or loss of life, particularly in informal housing, she added.
The panelists called for stronger government intervention. Mohapi urged policies for fairer food distribution, noting that South Africa produces enough food yet sees significant waste while an estimated 11,000 children die annually from malnutrition and related causes. He warned against collusion among commercial food sellers that could exploit fuel price rises to inflate costs further.
Community-led solutions were also emphasized, including promoting urban and rural agroecology, teaching people to grow their own organic food, and reducing reliance on volatile markets. Mohapi advocated government subsidies on basic food necessities and greater involvement of grassroots communities in addressing poverty, unemployment, and inequality in informal settlements and rural areas.
The speakers stressed the need for government to engage directly with affected communities rather than adopting a detached approach, as seen during the pandemic when many suffered without adequate support.
The Competition Commission report underscores the structural nature of these pressures, with energy costs forming a major part of low-income household budgets and forcing difficult choices between essentials like food and power. Panelists agreed that coordinated action from government, communities, and civil society is essential to avert a deepening crisis.