Massive fuel hike hits motorists this week

South African motorists and businesses are set for another financial blow as a steep fuel price increase takes effect on Wednesday, May 6.

The latest adjustment, announced by the Department of Mineral and Petroleum Resources, will see diesel prices surge past the R35 per litre mark, intensifying pressure on an already strained economy.

The increases are substantial and will have far-reaching implications for both consumers and businesses, particularly in the agricultural sector which relies heavily on diesel:
• Petrol (93 & 95 ULP and LRP): increase of 327.00 cents per litre
• Diesel (0.05% sulphur): increase of 618.77 cents per litre (wholesale)
• Diesel (0.005% sulphur): increase of 618.77 cents per litre (wholesale)
• Illuminating paraffin (wholesale): increase of 422.00 cents per litre
• Illuminating paraffin (SMNRP): increase of 563.00 cents per litre
• LPG: increase of 507.00 cents per kilogram

Also read: 12.20% electricity hike on the table in Mogale City

Echoing sentiments expressed this week, Henry van der Merwe, chairman of the South African Petroleum Retailers Association (SAPRA), a proud association of the Retail Motor Industry Organisation (RMI), said the increases are deeply concerning and will be felt across every sector of the economy.

“A petrol increase of over R3 per litre and diesel rising by more than R6 per litre is not just a shock at the pump – it drives up transport costs, food prices and ultimately the cost of living for all South Africans,” he said.

Van der Merwe explained that the adjustment is largely driven by a sharp increase in global oil prices during the review period, compounded by ongoing geopolitical tensions disrupting supply chains and elevating risk premiums in international markets.

“While the rand has shown relative stability, it has not been enough to offset the surge in international product prices. The reality is that South Africa remains highly exposed to global oil market volatility, and consumers are now paying the price,” he added.

The knock-on effects are expected to be widespread, placing additional strain on already pressured households and businesses, particularly in the transport, logistics, agriculture and small enterprise sectors.

Van der Merwe noted that while the temporary fuel levy relief provides some cushioning, it is unlikely to fully absorb the scale of the increases. This relief is also temporary. From July 1 onwards, the general fuel levy for petrol will return to R4.10 per litre and for diesel to R3.93 per litre.

“Even with intervention on the levy side, the magnitude of these adjustments means inflationary pressures will intensify. This raises concerns not only for consumers but also for the broader economic outlook, including the potential for further interest rate pressure in the months ahead,” he said.

SAPRA has urged motorists to plan ahead where possible and called on government to continue exploring mechanisms to mitigate extreme price shocks in a highly volatile global environment.

“The current situation underscores the urgent need for longer-term solutions to enhance energy resilience and reduce South Africa’s vulnerability to external shocks,” Van der Merwe concluded.

Have your say: Share your thoughts on the fuel price increase by emailing krugersdorpnews@caxton.co.za
or randfonteinherald@caxton.co.za.