South Africa fuel prices rise amid global oil volatility and tax adjustments

Fuel prices in South Africa are experiencing significant volatility driven by both global market shifts and domestic tax adjustments. While previous price drops in mid-2025 helped slow annual inflation—reducing it from 5% in June to 4.3% in July—recent developments have reversed some of this relief.

As of September 2026, petrol prices rose by R1.34 per litre and diesel by up to R3.15 per litre. The Department of Mineral and Petroleum Resources attributed approximately 80% of the petrol increase and 93% of the diesel hike to rising international refined product prices, influenced by US-Iran tensions and risks in the Strait of Hormuz. Brent crude rose from $82.37 to $87.88 per barrel during the review period.

Domestic factors also contributed to the hike. The Self-Adjusting Slate Levy increased by 21.90 cents per litre following a negative balance in the fuel levy fund. Additionally, a 4.9 cent per litre increase was applied to petrol to fund wage adjustments for forecourt employees under the Motor Industry Bargaining Council. This follows the full phase-out of temporary tax relief previously provided by the Treasury to cushion consumers against earlier oil price spikes.