The Minister of Mineral and Petroleum Resources has officially announced substantial adjustments to fuel prices, set to take effect this Wednesday, May 6,2026. Driven by geopolitical instability and rising global oil costs, South African motorists and industries are facing a sharp climb in costs at the pump.
Global tensions drive Brent Crude surge
The primary catalyst for the hike is the dramatic rise in international crude oil prices. During the period under review, the average price for Brent Crude oil surged from 93.67 to 101.00 US Dollars.
According to the Department, this spike is a direct result of continued tension between the US and Iran, the closure of the Strait of Hormuz, and significant damage to crucial energy infrastructure which has severely throttled global supply.
Impact on refined petroleum products
The cost of refined products followed the upward trend of crude. Notably, middle distillates such as diesel and paraffin have seen higher increases than petrol due to increased demand and reduced supply from the Persian Gulf.
This has led to higher contributions to the Basic Fuel Prices, specifically an increase of R2.04 per litre for petrol, R4.96 per litre for diesel, and R4.21 per litre for illuminating paraffin.
Furthermore, the prices for Propane and Butane have also climbed, attributed to the limited global supply following the Hormuz closure.
Currency stability and slate levy implementation
While the Rand/US Dollar exchange rate remained relatively stable, moving only slightly from 16.64 to 16.65 Rand per USD, it contributed less than one cent per litre to the price increase.
However, the Slate Levy will see a new implementation. Due to a cumulative negative balance of R14.173 billion for petrol and diesel at the end of March 2026, a slate levy of 122.70 c/l will be added to the price structures.
Government relief measures and LPGas pricing
In an effort to cushion the blow for consumers amid the ongoing conflict, the Minister of Finance and the Minister of Mineral and Petroleum Resources have announced a further temporary reduction in the general fuel levy. This relief measure includes a reduction of 300.0 c/l for petrol and 393.0 c/l for diesel, effective from May 6 to June 2,2026.
For those utilizing LPGas imported through the Port of Saldanha Bay in the Western Cape, the new pricing structures are also confirmed. The Maximum Refinery Gate Price will be R18375.72 per metric ton, while the Maximum Retail Price will be R40.85 per kilogram. These changes reflect a volatile global energy market, with the South African government attempting to balance fiscal recovery with consumer protection through temporary levy breaks.