Why petrol is cheaper but diesel prices rise for August
Petrol prices to drop by 52c per litre, but rising global supply pressures push diesel higher, increasing costs for farmers and businesses.
While Zululand commuters driving petrol-powered vehicles can enjoy a slight reprieve at the pumps this month following Wednesday’s fuel price adjustment, farmers, transport operators and businesses relying on diesel will feel a further pinch.
In the wake of the Department of Mineral and Petroleum Resources’ (DMPR) announcement of a 52c/litre drop for both grades of petrol and a R1.38 and R1.23/litre increase for diesel 0.05% and 0.005% respectively, we take a look at the factors contributing to this situation.
Why is petrol getting cheaper?
The biggest reason is that the international oil price fell during July. The average price of Brent crude oil declined from US$86.53 to US$82.37 per barrel during the pricing period.
Although renewed tensions between the United States and Iran briefly pushed oil close to $100 a barrel, those increases were offset by lower global demand and the earlier ceasefire agreement between the two countries.
Lower crude oil prices reduced the cost of producing petrol, allowing for a price decrease.
Why is diesel going up?
Diesel is being affected by different global supply pressures. According to the DMPR, international diesel prices climbed because of:
· Ongoing supply shortages linked to the Russia-Ukraine conflict
· Russian restrictions on diesel exports
· Middle Eastern refineries operating below capacity
These factors pushed international diesel prices sharply higher, resulting in a substantial increase at South African pumps despite lower crude oil prices.
South Africa buys oil in US dollars, so the exchange rate also affects local fuel prices. During the review period, the rand weakened slightly against the US dollar, moving from an average of R16.34 to R16.46 for $1.
August 2026 fuel price changes
From Wednesday, 5 August, the official adjustments are:
· Petrol 93: 52c per litre decrease
· Petrol 95: 52c per litre decrease
· Diesel (0.05% sulphur): R1.38 per litre increase
· Diesel (0.005% sulphur): R1.23 per litre increase
· Illuminating paraffin: R1.52 per litre increase
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