“The average under-recovery at the moment is R5.62 a litre. Then you add to that the fuel price levy, so you’re going to talk about, as things stand, around R6 a litre,” he said.<\/p>\n\n\n\n
However, Hogg added that the total under-recovery per litre was standing at R9, meaning South African motorists will effectively be subsidised by R3 per litre of petrol in April 2026.<\/p>\n\n\n\n
“That means that the following month, all other things being equal with no changes in the oil price or the rand, it would mean that another R3 a litre comes up in May,” he said.<\/p>\n\n\n\n
Considering the current inland price of unleaded 95 petrol, a R6 per litre increase would mean motorists will pay around R26.30 per litre at the pumps in April 2026.<\/p>\n\n\n\n
If Hogg’s prediction that another R3 per litre increase will follow in May holds true, motorists will be paying around R29.30 per litre at the pumps.<\/p>\n\n\n\n
“As far as diesel is concerned, the picture is even worse next week. Diesel’s going up R9.37 a litre. That’s almost 50%, and that’s the average for the month so far.”<\/p>\n\n\n\n
Hogg added that the total under-recovery for diesel is R16.33 per litre, which he described as “pretty hectic numbers”.<\/p>\n\n\n\n
Based on current predictions, wholesale 50ppm diesel prices will increase from R18.60 to R27.97 per litre, and these prices will be even higher at the pumps after retail markups.<\/p>\n\n\n\n
Slate Account explained<\/h2>\n\n\n\n![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2026\/02\/Petrol-pumps-1200x675.jpg\")
<\/figure>\n\n\n\nThe additional under-recoveries Hogg mentioned are because South Africa only adjusts its fuel prices once per month.<\/p>\n\n\n\n
To be as cost-reflective as possible, the adjustment for the next month is based on average international petroleum prices and the dollar-to-rand exchange rate. <\/p>\n\n\n\n
However, the next month’s adjustment does not account for the fact that fuel stations were selling petrol or diesel at prices divorced from the actual cost of the fuel procured.<\/p>\n\n\n\n
To make up for the difference, the government uses a Slate Account to retroactively compensate oil and petroleum suppliers for revenue lost when they sell their products at a discount over a certain period.<\/p>\n\n\n\n
This is recovered through a slate levy imposed on the petrol and diesel prices. The charge is only applied in the second month after significant under-recoveries or over-recoveries during a price review period.<\/p>\n\n\n\n
The current volatility in oil and petroleum prices will only be accounted for in May’s increase. The slate levy is currently 0 cents per litre. <\/p>\n\n\n\n
However, the Slate Account stands at a relatively modest R5.9 billion. If oil prices remain at current levels, it will swing into a negative balance, requiring a reinstatement of the slate levy.<\/p>\n\n\n\n
Hogg’s scenario is based on the assumption that the adjusted fuel prices for April will mostly reflect the actual cost, which some might argue is an optimistic outlook.<\/p>\n\n\n\n
However, it should be noted that the Department of Minerals and Petroleum Resources will announce the final adjustments only later this week or early next week, after completing the April review period.<\/p>\n\n\n\n
The impending fuel price surges result from the conflict in Iran, driving up oil prices, and the weakening of the rand against the dollar.<\/p>\n\n\n\n
Call to delay fuel tax increases<\/h2>\n\n\n\n![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2026\/02\/Enoch-Godongwana-1200x675.jpg\")
Enoch Godongwana, South Africa’s Minister of Finance<\/figcaption><\/figure>\n\n\n\nSouth Africa’s largest trade union, the Congress of South African Trade Unions (Cosatu), has called on the government to intervene and provide relief to motorists amid the anticipated surge in prices.<\/p>\n\n\n\n
Cosatu’s parliamentary coordinator, Matthew Parks, said many South Africans are already spending up to 40% of their salary on their commute to work.<\/p>\n\n\n\n
He added that the plan to increase fuel taxes, announced by finance minister Enoch Godongwana during his budget speech in February 2026, was in place before the conflict in Iran began.<\/p>\n\n\n\n
Godongwana announced changes to the Road Accident Fund (RAF) levy, the general fuel levy (GFL), and the carbon fuel levy, each of which is set to increase from 1 April 2026.<\/p>\n\n\n\n
He said the GFL will increase by R0.09 per litre for petrol and R0.08 per litre for diesel, while the RAF levy will rise by R0.07 per litre for both fuel types.<\/p>\n\n\n\n
Cosatu is urging the government to delay the onset of these fuel price increases to provide relief for motorists and prevent a “national disaster” for the economy and society.<\/p>\n\n\n\n
“That’s something the government can control,” Parks said. “It’s something which is quite easy to do administratively, and there is a contingency reserve of about R32 billion in the budget for disasters.”<\/p>\n\n\n\n
He added that the impending increases will significantly impact struggling households and warned that many workers already spend a large portion of their salaries on getting to and from work.<\/p>\n\n\n\n
“We already have slow economic growth, high unemployment, and the cost of living is already so difficult for most people to survive,” Parks said.<\/p>\n\n\n\n
“Most people spend 40% of their salary just to get to work, and to increase that to 60%, that’s just going to be a blow we can’t sustain.”<\/p>\n","protected":false},"excerpt":{"rendered":"
If oil prices and the dollar-to-rand exchange rate stabilise at their current levels during April, another R3 increase is a near certainty for May. <\/p>\n","protected":false},"author":341076,"featured_media":635975,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29366],"tags":[9359,27247,82991,90018,51719,61206],"class_list":["post-635955","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-motoring","tag-alec-hogg","tag-biznews","tag-diesel-prices","tag-oil-prices","tag-petrol-prices","tag-petrol-stations"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/635955"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341076"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=635955"}],"version-history":[{"count":16,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/635955\/revisions"}],"predecessor-version":[{"id":636253,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/635955\/revisions\/636253"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/635975"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=635955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=635955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=635955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/figure>\n\n\n\nThe additional under-recoveries Hogg mentioned are because South Africa only adjusts its fuel prices once per month.<\/p>\n\n\n\n
To be as cost-reflective as possible, the adjustment for the next month is based on average international petroleum prices and the dollar-to-rand exchange rate. <\/p>\n\n\n\n
However, the next month’s adjustment does not account for the fact that fuel stations were selling petrol or diesel at prices divorced from the actual cost of the fuel procured.<\/p>\n\n\n\n
To make up for the difference, the government uses a Slate Account to retroactively compensate oil and petroleum suppliers for revenue lost when they sell their products at a discount over a certain period.<\/p>\n\n\n\n
This is recovered through a slate levy imposed on the petrol and diesel prices. The charge is only applied in the second month after significant under-recoveries or over-recoveries during a price review period.<\/p>\n\n\n\n
The current volatility in oil and petroleum prices will only be accounted for in May’s increase. The slate levy is currently 0 cents per litre. <\/p>\n\n\n\n
However, the Slate Account stands at a relatively modest R5.9 billion. If oil prices remain at current levels, it will swing into a negative balance, requiring a reinstatement of the slate levy.<\/p>\n\n\n\n
Hogg’s scenario is based on the assumption that the adjusted fuel prices for April will mostly reflect the actual cost, which some might argue is an optimistic outlook.<\/p>\n\n\n\n
However, it should be noted that the Department of Minerals and Petroleum Resources will announce the final adjustments only later this week or early next week, after completing the April review period.<\/p>\n\n\n\n
The impending fuel price surges result from the conflict in Iran, driving up oil prices, and the weakening of the rand against the dollar.<\/p>\n\n\n\n
Call to delay fuel tax increases<\/h2>\n\n\n\nEnoch Godongwana, South Africa’s Minister of Finance<\/figcaption><\/figure>\n\n\n\nSouth Africa’s largest trade union, the Congress of South African Trade Unions (Cosatu), has called on the government to intervene and provide relief to motorists amid the anticipated surge in prices.<\/p>\n\n\n\n
Cosatu’s parliamentary coordinator, Matthew Parks, said many South Africans are already spending up to 40% of their salary on their commute to work.<\/p>\n\n\n\n
He added that the plan to increase fuel taxes, announced by finance minister Enoch Godongwana during his budget speech in February 2026, was in place before the conflict in Iran began.<\/p>\n\n\n\n
Godongwana announced changes to the Road Accident Fund (RAF) levy, the general fuel levy (GFL), and the carbon fuel levy, each of which is set to increase from 1 April 2026.<\/p>\n\n\n\n
He said the GFL will increase by R0.09 per litre for petrol and R0.08 per litre for diesel, while the RAF levy will rise by R0.07 per litre for both fuel types.<\/p>\n\n\n\n
Cosatu is urging the government to delay the onset of these fuel price increases to provide relief for motorists and prevent a “national disaster” for the economy and society.<\/p>\n\n\n\n
“That’s something the government can control,” Parks said. “It’s something which is quite easy to do administratively, and there is a contingency reserve of about R32 billion in the budget for disasters.”<\/p>\n\n\n\n
He added that the impending increases will significantly impact struggling households and warned that many workers already spend a large portion of their salaries on getting to and from work.<\/p>\n\n\n\n
“We already have slow economic growth, high unemployment, and the cost of living is already so difficult for most people to survive,” Parks said.<\/p>\n\n\n\n
“Most people spend 40% of their salary just to get to work, and to increase that to 60%, that’s just going to be a blow we can’t sustain.”<\/p>\n","protected":false},"excerpt":{"rendered":"
If oil prices and the dollar-to-rand exchange rate stabilise at their current levels during April, another R3 increase is a near certainty for May. <\/p>\n","protected":false},"author":341076,"featured_media":635975,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29366],"tags":[9359,27247,82991,90018,51719,61206],"class_list":["post-635955","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-motoring","tag-alec-hogg","tag-biznews","tag-diesel-prices","tag-oil-prices","tag-petrol-prices","tag-petrol-stations"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/635955"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341076"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=635955"}],"version-history":[{"count":16,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/635955\/revisions"}],"predecessor-version":[{"id":636253,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/635955\/revisions\/636253"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/635975"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=635955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=635955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=635955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
South Africa’s largest trade union, the Congress of South African Trade Unions (Cosatu), has called on the government to intervene and provide relief to motorists amid the anticipated surge in prices.<\/p>\n\n\n\n
Cosatu’s parliamentary coordinator, Matthew Parks, said many South Africans are already spending up to 40% of their salary on their commute to work.<\/p>\n\n\n\n
He added that the plan to increase fuel taxes, announced by finance minister Enoch Godongwana during his budget speech in February 2026, was in place before the conflict in Iran began.<\/p>\n\n\n\n
Godongwana announced changes to the Road Accident Fund (RAF) levy, the general fuel levy (GFL), and the carbon fuel levy, each of which is set to increase from 1 April 2026.<\/p>\n\n\n\n
He said the GFL will increase by R0.09 per litre for petrol and R0.08 per litre for diesel, while the RAF levy will rise by R0.07 per litre for both fuel types.<\/p>\n\n\n\n
Cosatu is urging the government to delay the onset of these fuel price increases to provide relief for motorists and prevent a “national disaster” for the economy and society.<\/p>\n\n\n\n
“That’s something the government can control,” Parks said. “It’s something which is quite easy to do administratively, and there is a contingency reserve of about R32 billion in the budget for disasters.”<\/p>\n\n\n\n
He added that the impending increases will significantly impact struggling households and warned that many workers already spend a large portion of their salaries on getting to and from work.<\/p>\n\n\n\n
“We already have slow economic growth, high unemployment, and the cost of living is already so difficult for most people to survive,” Parks said.<\/p>\n\n\n\n
“Most people spend 40% of their salary just to get to work, and to increase that to 60%, that’s just going to be a blow we can’t sustain.”<\/p>\n","protected":false},"excerpt":{"rendered":"
If oil prices and the dollar-to-rand exchange rate stabilise at their current levels during April, another R3 increase is a near certainty for May. <\/p>\n","protected":false},"author":341076,"featured_media":635975,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29366],"tags":[9359,27247,82991,90018,51719,61206],"class_list":["post-635955","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-motoring","tag-alec-hogg","tag-biznews","tag-diesel-prices","tag-oil-prices","tag-petrol-prices","tag-petrol-stations"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/635955"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341076"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=635955"}],"version-history":[{"count":16,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/635955\/revisions"}],"predecessor-version":[{"id":636253,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/635955\/revisions\/636253"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/635975"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=635955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=635955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=635955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}