Goodbye petrol price cut
The Department of Petroleum and Mineral Resources published the official fuel price adjustments, which take effect from 3 June, with unleaded 93 and 95 petrol increasing by R1.43 per litre.
Fuel price estimates from the Central Energy Fund (CEF) earlier in the month suggested that petrol prices would drop in June 2026.
However, these did not account for the government reducing the relief in the general fuel tax from R3.00 to R1.50 per litre.
From Wednesday, 3 June 2026, motorists will pay R27.95 per litre for unleaded 93 petrol and R28.06 per litre for unleaded 95 petrol inland.
However, there is good news for motorists with diesel-powered cars, as wholesale prices for 50ppm diesel will drop by R2.62 per litre.
The wholesale price of 500ppm diesel, which is used in certain industrial and agricultural applications, will decline by R3.25 per litre.
The diesel price at the pump will differ, as service station operators still have to add a retail margin, which is not regulated by the government.
Following surging global oil prices due to the US–Iran conflict in the Middle East, May saw relative stability in the price at just above $100 per barrel.
Prices remained within a narrow range throughout the month and began to ease as markets banked on a resolution between the United States and Iran.
The price per barrel dropped below $100 by the end of May. Although it was too late to have a marked impact, more stable pricing and the rand’s resilience pushed petrol and diesel into an over-recovery.
According to the latest data from the CEF, unleaded 93 sat at an over-recovery of R0.42 per litre, and unleaded 95 at an over-recovery of R0.46 per litre.
At the same time, 0.05% diesel showed an over-recovery of R5.57 per litre, and 0.005% diesel showed an over-recovery of R4.93 per litre.
Had the South African government continued its fuel tax relief, petrol prices would also have dropped in June 2026. The table below summarises the fuel price changes.
| May 2026 | June 2026 | |
|---|---|---|
| Inland | ||
| Unleaded 93 Petrol (retail) | R26.52 | R27.95 |
| Unleaded 95 Petrol (retail) | R26.63 | R28.06 |
| 500ppm diesel (wholesale) | R31.17 | R27.92 |
| 50ppm diesel (wholesale) | R31.88 | R29.26 |
| Coastal | ||
| Unleaded 93 Petrol (retail) | R25.73 | R27.16 |
| Unleaded 95 Petrol (retail) | R25.76 | R27.19 |
| 500ppm diesel (wholesale) | R30.30 | R27.05 |
| 50ppm diesel (wholesale) | R30.62 | R28.00 |
Cutting the fuel tax reprieve
The conflict between the United States and Iran drove crude oil prices much higher in the first few months of 2026.
In light of surging fuel prices in early 2026, the South African government cut the general fuel levy (GFL) by R3.00 per litre on 1 April 2026.
The relief was initially set to last until 5 May 2026. However, in the wake of persistently high oil prices, the National Treasury subsequently announced an extension to the GFL cut in late April.
At the same time, it announced further relief of R0.93 per litre for motorists filling their diesel tanks. The National Treasury announced that the tax relief would be halved in June 2026.
Therefore, from 3 June 2026, R1.50 per litre will be added back to the fuel price, and the relief will end in July 2026 when the remaining R1.50 per litre is added back.
Treasury estimated that the fuel tax relief would cost approximately R17.2 billion in taxes between April and June 2026.
The fuel price review period for July was off to a shaky start. On 1 June, oil prices jumped again after news broke that Iran had completely halted talks with the US over Israeli attacks in Lebanon.
In late May 2026, South African Petroleum Retailers Association chair Henry van der Merwe warned that service stations may be forced to reduce hours or close their doors due to high fuel prices.
This was because stations were selling fewer litres of fuel as motorists changed their driving habits to reduce spending.
“If we sell fuel at R25 a litre, we get R2. If we sell it at R40 a litre, we get R2, because it’s a margin. That’s where the unfortunate situation comes in. When the high fuel price hits us, the litres go down,” he said.
“It hits us hard, specifically the smaller sites, the rural areas. Those people are phoning and saying ‘we can’t afford to stay open at night because of security risks and low litres at night’.”
Van der Merwe added that there would be security-of-supply challenges, with service stations in rural areas most exposed, if prices did not normalise.
“People are talking of retrenching people because they can’t afford them, or operating shorter hours, and that, for the entire country, is not a good thing,” he said.
Van der Merwe also said that petrol stations had observed a substantial increase in motorists driving off without paying for their fuel.
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