Another sharp fuel price hike in May is set to intensify where people work from, particularly as living in economic hubs is becoming increasingly unaffordable.
Economists say rising global oil prices, driven by escalating tensions in the Middle East around Iran and the Strait of Hormuz, are placing immense pressure on urban commuters already grappling with high transport costs.
Independent economist John Loos says the knock-on effects could be significant, particularly for households reliant on daily travel.
“For urban commuters, this will imply a significant transport cost increase, and it is to be expected that many households will look for ways to manage such increases,” Loos explains.
While cutting back on non-essential travel may offer some relief, daily commuting remains unavoidable for many, especially those dependent on private vehicles. But, as seen during COVID-19 lockdowns, a sizeable portion of office-based workers could turn again to remote or hybrid work as a cost-saving measure.
“The debate around remote and hybrid work may well intensify,” Loos notes, adding that sustained high fuel prices could trigger shifts in the labour market.
He argues that the financial and time-saving advantages of working from home are becoming harder to ignore.
“Remote work arguments are particularly powerful when it comes to reducing unproductive commuting time and financial costs.”
Should fuel prices remain elevated, companies offering flexible work arrangements may gain a competitive edge in attracting talent.
“Employers who do offer greater flexibility could see their companies more sought after as places to work,” Loos adds, suggesting this could even lower recruitment costs over time.
Legal experts, however, caution that flexibility is not guaranteed. Leila Moosa, a senior associate in employment law at Cliffe Dekker Hofmeyr, points out that there is currently no automatic legal right to work from home.
“From a legal perspective, there is no statutory or legal right for a person to work remotely,” Moosa says, adding that such an arrangement would depend on employment contracts or company policies.
She adds that employers considering remote work policies should adopt a structured and clearly communicated approach, balancing operational needs with employee expectations.
“The first step would be to look at what your contracts and policies say and whether this is something that you can implement. Look at your business, what does your business need? Is it something that’s possible to work with your operational requirements? Because you cannot compromise on that in order for the sustainability of your business into the future to continue. And then, of course, that ties in with secured employment in the future.”
For many labour-intensive sectors, including manufacturing, healthcare and customer-facing industries, working from home is simply not a practical option.
This reality is likely to require a different set of conversations between employers and employees, focused less on location flexibility and more on ways to ease the financial strain of rising transport costs.
