South African motorists will be paying the highest petrol price in the country's history from Wednesday, 3 June 2026, despite improving market conditions that would normally have resulted in lower fuel prices.
The Department of Mineral and Petroleum Resources has announced the official fuel price adjustments for June, confirming that inland 95 unleaded petrol will increase by R1.43 per litre to a record R28.06 per litre.
The latest increase surpasses the previous record of R26.74 per litre set in July 2022, when global oil markets were disrupted following Russia's invasion of Ukraine.
The sharp rise follows months of volatility in international oil markets, driven largely by escalating tensions in the Middle East, particularly the conflict involving the United States and Iran.
According to the department, the crisis and the effective closure of the Strait of Hormuz disrupted approximately 20% of global oil supplies, sending Brent crude oil prices soaring from $93.67 per barrel to a peak of $138 per barrel in April.
While oil prices remained above $100 per barrel for much of May before easing toward the end of the month amid hopes of a diplomatic breakthrough between the US and Iran, the decline came too late to significantly improve South Africa's fuel price outlook.
The rand also remained relatively stable against the US dollar, trading between R16.30 and R16.65, which helped cushion some of the impact of elevated oil prices.
However, despite these improvements, government tax and levy adjustments ultimately outweighed any savings that would have been passed on to motorists.
Earlier this year, Finance Minister Enoch Godongwana introduced temporary fuel levy relief to shield consumers from rising fuel costs. The General Fuel Levy was reduced by R3.00 per litre for petrol and R3.93 per litre for diesel during April and May.
From June, Treasury has reinstated half of that relief, adding R1.50 per litre back onto petrol prices. At the same time, the Slate Levy was increased to R1.58 per litre to help recover a R14.2 billion fuel industry shortfall.
The combined impact of these measures pushed petrol prices to record levels, despite improvements in fuel price fundamentals.
Diesel users, however, will see some relief at the pumps. Although R1.96 per litre has been reintroduced through fuel levy adjustments, diesel prices will decrease by between R2.62 and R3.25 per litre.
The wholesale price of inland 0.005% diesel will fall to R29.26 per litre after reaching a record R31.88 per litre in May.
Despite the reduction, fuel prices remain significantly higher than they were at the start of the year. Petrol has risen by R7.31 per litre between January and June, while diesel remains R10.74 per litre more expensive than January levels, even after the latest decrease.
The fuel price increases continue to place pressure on households and businesses already grappling with rising living costs.
The South African Petroleum Retailers Association welcomed the decline in diesel prices but expressed concern over the impact of higher petrol prices on consumers.
The organisation noted that lower diesel, illuminating paraffin and liquefied petroleum gas (LPG) prices could provide some relief for transport operators, farmers, small businesses and households.
SAPRA National Chairperson Henry van der Merwe stressed that fuel retailers do not benefit directly from higher fuel prices because retail margins are regulated and fixed.
"Petroleum retail margins in South Africa are regulated and fixed, meaning retailers do not benefit directly from price increases, even as operating and financing costs remain elevated," he said.
Van der Merwe added that any reduction in fuel-related costs is important for consumers and the broader economy, but warned that petrol retailers continue to operate in a challenging business environment despite changes in pump prices.
The latest fuel adjustment is expected to have a ripple effect across the economy, with higher petrol prices likely to increase transport and logistics costs, placing further pressure on already strained household budgets.