South African motorists and energy consumers will face higher fuel costs from midnight, after the Department of Mineral and Petroleum Resources announced increases across all major fuel categories in its latest monthly adjustment.
The department said the price hikes reflect sustained pressure in international oil markets, coupled with exchange rate fluctuations during the fuel price review period.
From Wednesday, petrol (93 and 95 ULP & LRP) will increase by 20 cents per litre. Diesel will see sharper hikes, with 0.05% sulphur diesel rising by 62 cents per litre and 0.005% sulphur diesel by 65 cents per litre.
Wholesale illuminating paraffin will increase by 44 cents per litre, while the Single Maximum National Retail Price (SMNRP) for paraffin will rise by 58 cents per litre. The maximum retail price of liquefied petroleum gas (LPG) will increase by 23 cents per kilogram.
Industry leaders say the increases are largely driven by geopolitical instability and supply-side disruptions that have pushed global crude oil prices higher.
Henry van der Merwe, chairperson of the South African Petroleum Retailers Association (SAPRA), said the latest adjustment underscores the continued volatility in global energy markets.
“These adjustments reflect the conflict-related risk premium currently embedded in international crude prices, as well as broader supply constraints,” he said. “While the rand showed relative resilience against the US dollar during parts of the review period, it was not sufficient to counter the sustained upward movement in crude and refined product prices.”
The department’s monthly pricing formula takes into account international crude oil and petroleum product prices, movements in the rand-dollar exchange rate, shipping and transport costs, as well as local product slate balances that determine over- or under-recoveries in the basic fuel price structure.
Van der Merwe warned that uncertainty remains high following escalating tensions in the Middle East and the reported closure of the Strait of Hormuz, a strategic shipping route through which approximately 20% of the world’s oil supply passes.
“Any sustained disruption in that corridor has immediate and far-reaching consequences for global oil supply and pricing. Unfortunately, South Africa, as a net importer of refined petroleum products, is highly exposed to these global shocks,” he said.
The transport sector has also raised alarm over the impact of the diesel increase. Gavin Kelly, chief executive officer of the Road Freight Association (RFA), said the hike will place immediate financial strain on logistics operators.
“Diesel is the primary fuel for most medium and heavy commercial transporters. An increase of between 60 and 65 cents per litre represents a significant cost escalation in a sector where fuel is one of the largest input expenses,” Kelly said.
He warned that transporters operating on tight margins will be forced to absorb the cost temporarily or pass it on to clients through higher freight tariffs, depending on contractual arrangements.
“The gradual reductions in the basic fuel price that provided some relief during 2025 are now effectively erased. Inevitably, consumers will begin to feel the impact at the till as higher transport costs filter through the supply chain,” Kelly added.
Beyond the transport industry, economists caution that rising fuel prices could place renewed upward pressure on inflation, influencing broader economic conditions, including interest rate outlooks and household disposable income.
Further strain is expected next month, when increases in the general fuel levy and the Road Accident Fund levy, announced during the 2026 national Budget, are scheduled to take effect.
With global tensions persisting and oil markets remaining highly sensitive to geopolitical developments, industry stakeholders say further volatility in fuel prices cannot be ruled out in the months ahead.
anita. Konki@inl.co.za