Fuel price hike in South Africa: Petrol above R3, diesel above R35/litre from May 6

Motorists and businesses across South Africa are bracing for a sharp rise in fuel prices from Wednesday, May 6, with diesel rising to more than R35 per litre.

South African motorists and businesses are preparing for a significant increase in fuel prices following the latest adjustments announced by the Department of Mineral and Petroleum Resources.

The increase is substantial and is expected to have far-reaching implications for consumers and businesses, especially in the agriculture sector, which depends heavily on diesel.

The latest adjustments are as follows:

• Petrol (93 and 95 ULP and LRP): increased by 327.00 cents per liter
• Diesel (0.05% sulphur): Increase of 526.70 cents per liter (wholesale)
• Diesel (0.005% sulphur): Increase of 526.70 cents per liter (wholesale)
• Illuminating Paraffin (Bulk): Increase of 422.00 cents per litre.
• Illuminating Paraffin (SMNRP): increased by 563.00 cents per liter
• LPG: Increase of 507.00 cents per kilogram

Echoing concerns raised this week, Henry van der Merwe, president of the South African Petroleum Retailers Association, which is affiliated with the Retail Motor Industry Organisation, warned that the increase will be felt in every sector of the economy.

“An increase of more than R3 per liter in petrol and more than R5 per liter in diesel is not just a blow at the pump – it increases transport costs, food prices and ultimately the cost of living for all South Africans,” he said.

Van der Merwe attributed this adjustment primarily to the sharp rise in global oil prices during the review period, coupled with ongoing geopolitical tensions that are disrupting supply chains and increasing risk premiums in international markets.

“Although the rand has shown relative stability, this has not been enough to offset the surge in international product prices. The reality is that South Africa is exposed to global oil market volatility and consumers are now paying the price,” he said.

The impact is expected to be widespread, placing additional pressure on already stressed households and businesses, particularly in the transport, logistics, agriculture and small enterprise sectors.

Van der Merwe said that although the temporary fuel levy relief provides some relief, it is unlikely to fully absorb the scale of the increase. The relief is also short-lived. From July 1, the normal fuel duty for petrol will return to R4.10 per litre, while diesel will rise to R3.93 per litre.

“Even with interventions on the levy side, the magnitude of these adjustments means inflation pressures will intensify. This raises concerns not only for consumers but also for the macroeconomic outlook, including the possibility of further pressure on interest rates in the coming months,” he said.

They concluded, “The current situation underlines the urgent need for long-term solutions to improve energy resilience and reduce South Africa's sensitivity to external shocks.”