Fuel Price Hike: Petrol & Diesel to Increase in March & April 2026 | South Africa
South African motorists will face higher fuel prices starting Wednesday, March 4th, as both petrol and diesel costs are set to increase. The adjustments come despite petrol prices currently sitting at four-year lows, signaling a potential end to the recent period of relief at the pump. This increase will impact household budgets and potentially broader economic activity as transportation costs rise.
Price Adjustments: What You’ll Pay at the Pump
The Department of Petroleum and Mineral Resources announced a 20 cents per litre increase for both 93 and 95 octane petrol. Diesel prices will see a more substantial jump, rising by 62 cents per litre for 500ppm and 65 cents per litre for 50ppm. A litre of 95 Unleaded petrol will now cost R19.47 at the coast and R20.30 in Gauteng. 93 Unleaded will retail for R20.19 in Gauteng. Wholesale diesel prices will reach R17.84 at the coast and R19.17 inland.
These changes will directly affect consumers and businesses reliant on fuel for transportation and operations. For example, the Road Freight Association has consistently highlighted the impact of fuel price fluctuations on the cost of goods and services, and this increase is likely to be passed on to consumers.
International Factors and Rand Strength
The primary driver behind these price hikes is elevated international product prices recorded throughout February. The average Brent Crude oil price increased from US $64.08 to $69.08 during the review period, fueled by higher shipping rates and geopolitical tensions, particularly between the US and Iran. However, a relatively firmer South African rand has partially offset these increases, mitigating what could have been significantly larger price jumps – potentially around 35 cents a litre for petrol and nearly 80 cents for diesel.
The interplay between global oil prices and the rand exchange rate is a critical factor in determining South Africa’s fuel costs. South Africa imports a significant portion of its fuel, making it vulnerable to fluctuations in both oil prices and currency exchange rates. A weaker rand effectively increases the cost of imported fuel, while a stronger rand can help to cushion the impact of rising oil prices.
Looking Ahead: April’s Potential Price Pain
The outlook for April is even less encouraging, with the likelihood of further fuel price increases. The ongoing conflict in the Middle East has already sent international oil prices surging in early March, with Brent Crude trading at $77.79 on Wednesday morning – a 11.4% increase compared to the previous week. Adding to this pressure are planned increases to fuel taxes, as outlined in the 2026 Budget Speech delivered by Finance Minister Enoch Godongwana.
Tax Adjustments on the Horizon
The proposed tax adjustments include a 9 cents per litre increase to the General Fuel Levy (GFL) for petrol and 8 cents for diesel. The carbon fuel levy will also rise, adding 5 cents per litre for petrol and 6 cents for diesel. The Road Accident Fund (RAF) levy is set to climb by 7 cents per litre across both fuel types. Combined, these tax increases will add an additional 21 cents per litre to the cost of fuel.
Once implemented on April 1st, these changes will bring the total RAF contribution to R2.25 per litre, while the GFL component for petrol will increase to R4.10 per litre. These levies are intended to fund road infrastructure and provide compensation to victims of road accidents, but critics argue that they place an undue burden on consumers and businesses.
Concerns Over RAF Efficiency
The Automobile Association (AA) has voiced concerns about the effectiveness of the RAF levy increases, arguing that simply allocating more funding to the RAF does little to address its underlying inefficiencies. Bobby Ramagwede, CEO of the AA, stated that the Minister had an opportunity to provide meaningful relief to consumers by lowering mobility costs and stimulating economic activity. Critics suggest that the RAF requires fundamental reform to improve its financial sustainability and service delivery.
The AA’s concerns reflect a broader debate about the optimal funding model for road infrastructure and accident compensation. Some argue for alternative funding mechanisms, such as toll roads or vehicle registration fees, to reduce reliance on fuel levies, which disproportionately affect lower-income households.
Impact on Consumers and Businesses
The combined effect of these price increases and tax adjustments will undoubtedly set additional strain on household budgets, particularly for those reliant on personal vehicles for commuting and essential travel. Businesses, especially those in the transportation and logistics sectors, will also face higher operating costs, which may be passed on to consumers in the form of higher prices for goods and services.
The timing of these increases is particularly concerning, as they come at a time when many South Africans are already grappling with economic hardship and rising living costs. The increases could also dampen consumer spending and slow down economic growth.
What to Expect in the Coming Months
Monitoring global oil price trends and the performance of the South African rand will be crucial in assessing the potential for further fuel price adjustments in the coming months. The geopolitical situation in the Middle East remains volatile, and any escalation of conflict could lead to further increases in oil prices. The implementation of the fuel tax increases on April 1st will also add to the upward pressure on prices.
The Department of Petroleum and Mineral Resources will continue to monitor the situation and make adjustments to fuel prices as necessary, based on prevailing market conditions and regulatory requirements. Consumers and businesses should prepare for continued volatility in fuel prices and adjust their budgets accordingly.
The Department of Mineral Resources also announced events for March 4th, 2026, which may be related to energy policy discussions. Further details are available on their newsroom page.