Fuel prices in South Africa set to increase on Wednesday

South Africa’s fuel prices are set for a significant increase effective from midnight tonight, May 5, 2026, into May 6, primarily due to the expiration of a temporary R3 per litre fuel levy relief that ran from April 1 to May 5. This adjustment, announced by the Department of Mineral and Petroleum Resources (DMPR), comes amid ongoing global oil market volatility and local economic pressures.

The hikes vary by fuel type and location, with inland prices taking the biggest hit. Petrol 93 unleaded rises by R3.27 per litre to R26.52, while petrol 95 unleaded increases by the same amount to R26.63. Diesel (both 0.05% and 0.005% sulphur) jumps by R6.19 per litre to R32.30, illuminating paraffin wholesale climbs R4.22 per litre to R22.50, and LPGas goes up R5.07 per kg.

These changes mark one of the sharpest monthly adjustments in recent history, building on April’s steep rises where petrol increased by R3.06 per litre and diesel by up to R7.51. Earlier forecasts had predicted even larger jumps – up to R11.53 for diesel including the levy reinstatement – but final figures are slightly moderated.

Global factors dominate, including escalating geopolitical tensions in the Middle East, such as US and Israeli actions against Iran, which have spiked crude oil prices. South Africa, heavily reliant on imported crude and finished products, faces higher international benchmark prices plus shipping costs.

Locally, the rand’s weakness amplifies these costs, while the end of the government’s temporary levy cut – intended as short-term consumer relief – adds R3 per litre across petrol and diesel. Additional levies like the Road Accident Fund (RAF) at 225c/l and carbon levy hikes (5-6c/l) further contribute.

This fuel shock will fuel inflation, with projections of a 0.6% CPI spike pushing May’s rate to 4.2%, well above the 3.7% forecast. Transport costs, which underpin food, airfares, and goods prices, could add hundreds of rands to monthly household expenses.

The South African Reserve Bank may respond with a 25 basis-point interest rate hike at its May 28 meeting to tame these pressures. Businesses, especially logistics and retail, face margin squeezes, potentially leading to job cuts or price pass-throughs.

Motorists are urged to fill up before midnight on May 5 to avoid the hike – a 50-litre diesel tank could cost an extra R575 post-increase. Consider hybrid or remote work to cut commuting; for a 40km daily round trip, costs rise 25-30%. Fuel-efficient driving, carpooling, or public transport offer longer-term savings amid no immediate relief signalled by government.

South Africa’s fuel pricing formula, regulated monthly by DMPR, balances slate levies, wholesale margins, and international crude (80% Brent) plus local refining costs. Recent trends show volatility: March saw modest 20-65c rises, April’s were record-shattering due to oil surges post-Ukraine echoes, and May compounds this.

The July 2022 peak (R2.57 petrol jump) pales against today’s diesel trajectory, highlighting energy security risks for an import-dependent nation. Critics call for levy reforms or refinery investments like Astral’s delayed project to shield consumers.

Low-income households, reliant on paraffin (up sharply in prior months), bear disproportionate pain, exacerbating inequality. Agriculture faces higher input costs, risking food inflation amid drought recovery. Tourism and exports suffer as airfares and freight rise.

Government faces pressure for permanent levy tweaks or green energy shifts, but fiscal constraints limit options under President Trump’s global trade influences. Industry groups like the Fuel Industry Association warn of supply strains if panic-buying occurs.