South Africa Hikes Fuel Prices as Global Oil Crisis Worsens

South Africa will implement steep increases in petrol and diesel prices from May 6, 2026, as ongoing global oil market disruptions continue to drive up domestic energy costs.

The Department of Mineral and Petroleum Resources announced on Monday that petrol will rise by R3.27 per litre, while diesel will jump by R6.19 per litre. Illuminating paraffin will increase by R4.22 per litre, with further adjustments across other fuel products.

Officials attributed the surge to rising crude oil prices, tightening global fuel supply, and sustained geopolitical tensions. The average Brent crude price climbed from $93.67 to $101 per barrel during the review period, largely due to escalating conflict between the United States and Iran. The closure of the Strait of Hormuz, a critical oil transit route, and damage to key infrastructure have severely affected crude oil supply.

International refined product prices also rose sharply. Diesel and paraffin recorded steeper increases than petrol, driven by stronger global demand and reduced supply from the Persian Gulf region.

To cushion the impact on consumers, the government approved a temporary reduction in fuel levies. Petrol will see a cut of 300 cents per litre, while diesel will get 393 cents per litre off. The relief runs from May 6 to June 2, 2026. However, a slate levy of 122.70 cents per litre has been introduced to recover a cumulative under-recovery balance exceeding R14.17 billion.

Liquefied petroleum gas will also cost more, with the maximum retail price rising by over R5 per kilogram in Gauteng and nearly R6 in the Western Cape. Illuminating paraffin, widely used by low-income households, will see both wholesale and retail price hikes, raising fresh concerns about energy affordability.

The South African rand remained largely stable against the US dollar, moving marginally from 16.64 to 16.65, offering little relief. Officials noted that the exchange rate contributed less than one cent per litre to the price changes.

The latest adjustment highlights the vulnerability of import-dependent economies to geopolitical shocks in global energy markets, with analysts warning that sustained Middle East tensions could keep fuel prices elevated in the coming months.