South Africa hikes fuel prices as global oil crisis deepens

South Africa will implement sharp increases in the pump prices of petrol, diesel, and other petroleum products from May 6, 2026, as global oil market disruptions continue to ripple through domestic energy costs.

The country’s Department of Mineral and Petroleum Resources announced the adjustments on Monday, citing a combination of rising crude oil prices, tightening global fuel supply, and sustained geopolitical tensions as key drivers behind the surge.

In the new pricing template, petrol will rise by R3.27 per litre ($0.18 per litre), while diesel will record a steeper increase of R6.19 per litre. Illuminating paraffin will climb by R4.22 per litre, with additional adjustments across LPG and other fuel categories.

The government explained that the increases reflect the reality of South Africa’s heavy dependence on imported crude oil and refined petroleum products, which are priced at international market rates and influenced by shipping and logistics costs.

The statement read, “The Minister of Mineral and Petroleum Resources announces the adjustment of fuel prices based on current local and international factors with effect from the 6th of May 2026. South Africa’s fuel prices are adjusted monthly, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g., shipping costs.”

Providing insight into the development, the ministry stated, “South Africa’s fuel prices are adjusted monthly, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs such as shipping.”

Central to the latest price shock is the surge in global crude oil prices, driven largely by escalating tensions between the United States and Iran.

The ministry disclosed that the average Brent crude price rose significantly from $93.67 to $101 per barrel during the review period.

It attributed the increase to supply disruptions linked to the ongoing conflict, including the closure of the Strait of Hormuz, a critical global oil transit route, and damage to key infrastructure.

“The average Brent Crude oil price increased… due to continued tension between the US and Iran, the closure of the Strait of Hormuz, and damage to other crucial infrastructure, which have affected crude oil supply,” the statement noted.

Beyond crude oil, international refined product prices also climbed, with diesel and paraffin recording sharper increases than petrol.

Authorities said the spike in middle distillates was driven by stronger global demand and reduced supply from the Persian Gulf region.

According to the ministry, “The prices of middle distillates (diesel and paraffin) increased more than petrol prices because of higher demand and reduced supply from the Persian Gulf.”

These pressures translated into higher contributions to South Africa’s Basic Fuel Price, with diesel alone add ing nearly R4.96 per litre in cost pressures before final adjustments.

While the South African rand remained largely stable against the US dollar, moving marginally from 16.64 to 16.65, the impact on fuel prices was negligible.

The ministry said the exchange rate contributed “less than one cent per litre” to fuel price changes, offering little cushion against the broader global shocks.

In a bid to soften the blow on consumers, the government announced a temporary reduction in fuel levies.

The Minister of Finance, in consultation with the energy ministry, approved a short-term cut of 300 cents per litre on petrol and 393 cents per litre on diesel.

The relief measure will run from May 6 to June 2, 2026.

“Due to the ongoing US-Iran conflict, which continues to affect fuel prices globally, the Minister of Finance, in consultation with the Minister of Mineral and Petroleum Resources, announced a further temporary reduction in the general fuel levy of 300.0 c/l to be implemented in the price structures of petrol and R393.0 c/l for diesel from the 6th of May 2026 to the 2nd June 2026.”

The ministry said the intervention was necessary “due to the ongoing US-Iran conflict, which continues to affect fuel prices globally.”

However, this relief is partially offset by the implementation of a slate levy of 122.70 cents per litre, introduced to recover a cumulative under-recovery balance of over R14.17bn in the fuel pricing system.

Other energy products were not spared. The maximum retail price of LPG will increase by over R5 per kilogram in Gauteng and nearly R6 in the Western Cape.

Similarly, illuminating paraffin, widely used by low-income households, will see both wholesale and retail price increases, raising fresh concerns about energy affordability.

The ministry also fixed the Maximum Refinery Gate Price for LPG imported through Saldanha Bay at R18,375.72 per metric ton.

South Africa operates a regulated fuel pricing system that adjusts monthly based on a transparent formula linked to global oil prices, exchange rates, and domestic cost elements.

The latest hike underscores the vulnerability of import-dependent economies to geopolitical shocks in global energy markets.

With the Strait of Hormuz accounting for a significant share of global oil shipments, any disruption in the corridor often triggers immediate price volatility worldwide.

The sustained tensions in the Middle East could keep fuel prices elevated in the coming months, placing additional strain on households, transport costs, and inflation.

For South Africa, the latest adjustment not only reflects global realities but also highlights the urgency of diversifying energy sources and strengthening domestic refining capacity to reduce exposure to external shocks.