Full Breakdown
South Africa Raises Petrol Prices as Fuel Relief Ends
6/3/2026, 12:45:41 PM
Record Petrol Price Increase
On June 3, 2024, Department of Mineral Resources and Energy said 95-octane gasoline will rise to 28.06 rand per litre, up R1.43 from 26.63 rand. The increase follows the end of fuel-levy relief and Brent crude moving above $100 per barrel.
Background
In April, the Treasury announced the fuel-levy relief, introduced to buffer earlier oil-price spikes, would be cut in June and end in July. The move coincides with Iran-linked disruptions in the Strait of Hormuz, which carries 20 % of global oil, pushing crude higher and exposing import-dependent South Africa to cost spikes.
Data & Statistics
Brent crude rose from $101 to $104.59 per barrel. The Slate Levy rose to 157.74 cents per litre. Diesel (0.05 % sulphur) will be cut by R3.25 per litre and diesel (0.005 % sulphur) by R2.62. Illuminating paraffin reductions are reported at either R5.96 or up to R7.95 per litre, showing a discrepancy.
Official Statements & Responses
The DMRE confirmed the price change, citing global market alignment. The Treasury reiterated its plan to withdraw fuel-levy relief in June. Policymakers noted the Reserve Bank’s 25-basis-point rate hike to 7 % aims to bring inflation back to 3 %, with further tightening possible if the Iran-related conflict continues.
Why It Matters
S&P Global Ratings warned that oil near $100 could raise food and fertilizer costs, curb consumer spending and strain inflation control. Pump price hikes raise transport costs, feeding into food prices and expenses, adding pressure to South Africa’s 4 % inflation rate.
Conflicting Reports & Gaps
Diesel cuts are uniformly reported at R3.25 per litre, but paraffin reductions vary: one source cites R5.96 per litre, another up to R7.95. The exact paraffin figure remains unclear. No consumer-group or opposition statements appear in the sources.
What’s Next
The government will end the remaining fuel-levy relief by July, raising exposure to energy shocks. The Reserve Bank may lift rates further if oil stays above $100 per barrel and inflation stays above target. Monitoring of Strait of Hormuz tensions will continue to shape South Africa’s import-dependent energy costs.
Verbatim Quotes
- “The department said international diesel and paraffin prices declined during the review period as seasonal demand for middle distillates weakened in the Northern Hemisphere ahead of summer.” — Department of Mineral Resources and Energy
- “The Treasury said in April that the fuel relief measures would be scaled back this month before being phased out completely in July.” — South African Treasury
- “Policymakers last week raised borrowing costs by 25 basis points to 7% to steer inflation back to 3%, and suggested more tightening may be needed if the war in Iran drags on.” — South African policymakers
