Earlier in the month, Stats SA reported the notable impact of higher fuel prices on consumer inflation.¹ Producers were not spared either, according to data released this week.

Manufacturers are also feeling the heat

Fuel price increases also affected prices at the factory gate, as measured by the headline producer price index (PPI). The annual rate for the PPI quickened to 4,8% in April from 2,3% in March, marking the highest print in two years. What is notable is the monthly change. The PPI rose sharply by 3,0% between March and April, the biggest monthly jump since the beginning of the current PPI series in 2012.

The coke, petroleum, chemical, rubber & plastic products category was the most significant contributor to both the annual and monthly rates. The price index for this category rose by 12,8% between March and April, mainly driven by increases in diesel and petrol prices.

Digging a little deeper into the PPI data shows diesel prices rising by 39,4% and petrol prices by 18,3%. These increases were the largest for petrol and diesel respectively since the start of the PPI series.

The impact beyond fuel

Oil-based products are used in the production of fertilisers. Together with rising oil prices, shipping delays caused by the conflict in the Middle East pushed fertiliser prices higher.² In South Africa, the PPI registered record price increases for fertilisers between March and April, with ammonia nitrate fertilisers rising by 37,6% and the ‘other fertilisers’ category by 20,1%. Petrochemicals & feedstocks increased by 19,5% (Figure 1).

What does this mean for consumers?

The PPI is a leading indicator for some components of the CPI as it captures price changes in the supply chain before goods reach the consumer market. The sharp increases in fuel and fertiliser prices may, over time, have a knock-on effect on food prices, placing additional pressure on consumer pockets.

For more information, download the April 2026 PPI statistical release and Excel files here.

¹ Stats SA, Fuel prices lead inflation higher [20 May 2026] (read here).

² Farmer’s Weekly, Fertiliser sharp price increases a major concern for farmers [29 March 2026] (read here).

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