South African motorists and businesses will face a notable jump in fuel costs starting May 6, with official figures indicating a near four-year high for gasoline and a record-breaking move in wholesale diesel pricing.
The Department of Mineral Resources and Energy said Monday that the retail price of 95-octane gasoline in Gauteng - the countryconomic centre - will increase by 14% to 26.63 rand per liter. That level represents the highest retail price for the grade since July 2022.
At the same time, the wholesale cost of diesel - for which retailers set their own margins - is set to rise by 24%, pushing wholesale diesel above 30 rand per liter for the first time, according to the department nnouncement. The price adjustments are scheduled to take effect on May 6.
Officials attributed the upward pressure to a combination of stronger international oil prices and a weaker rand that officials link to the Iran war. The conflict has disrupted flows through the Strait of Hormuz, a critical shipping lane for global oil supplies, prompting countries from South Africa to South Korea to implement measures intended to blunt the impact of higher energy costs.
In Pretoria, National Treasury confirmed last week that it will extend a temporary reduction in the levy it charges on gasoline for an additional month. Treasury also said it will remove the general fuel levy on diesel from May 6 until June 2. These relief steps were first announced by the government in late March.
Combined, the government actions provide a limited and time-bound buffer against the full scale of pass-through from global oil and currency movements to domestic pump prices. The announced levy changes are explicitly short-term and tied to specific dates: the gasoline levy reduction is extended by a month, and the diesel general fuel levy is suspended from May 6 through June 2.
The mechanics of diesel pricing differ from regulated retail gasoline: diesel wholesale prices are set before retailers apply margins, which means retailers retain discretion on final consumer diesel prices. The departmentigures therefore reflect an upstream cost shift that could transmit variably to end users depending on retailer pricing decisions.
For households, transport operators and firms with fuel-intensive operations, the scheduled increases represent a material and immediate cost headwind. The government ountermeasures will narrow but not eliminate the net rise in pump prices over the coming month.
Summary
From May 6, 95-octane gasoline in Gauteng will rise 14% to 26.63 rand per liter, the highest since July 2022, while wholesale diesel will increase 24% and exceed 30 rand per liter for the first time. Officials cited higher oil prices and a weaker currency linked to the Iran war. National Treasury extended a gasoline levy reduction for another month and will remove the general fuel levy on diesel between May 6 and June 2; those relief measures were first announced in late March.