JOHANNESBURG - Government has provided six reasons behind the fuel price increases, which will take effect on Wednesday.
This is as it cited a combination of current local and international factors.
According to the Department of Mineral and Petroleum Resources head of communications, Lerato Ntsoko, South Africa’s fuel prices are adjusted monthly and informed by international and local factors.
“International factors include the fact that South Africa imports both crude oil and finished products at a price set at an international level including importation costs.”
The factors contributing to the latest adjustment, according to the department, include :
- Higher crude oil prices: Average Brent Crude oil prices increased from 87.89 UDS to 101 USD amid continued US and Iran tensions, high shipping costs and decreasing inventories.
- Higher international petroleum product prices: Petrol, diesel and illuminating paraffin increased because of a shortage linked to lower global inventories of products.
- The rand/dollar exchange rate: The rand appreciated slightly on average against the USD; this led to a lower contribution to Basic Fuel Prices (BFP) of petrol, diesel and illuminating paraffin
- Slate levy implementation: The cumulative slate amounted to a negative balance of R10.45 billion for petrol and diesel at the end of August 2026.
- Octane differential between 93 and 05 petrol grades: The BFP octane differential has changed during the previous quarter and, as such, retail prices of 93 and 65 petrol octanes will be different in each fuel price zone, with effects from October 2026
- Maximum Refinery Gate for LPG imports through Saldanha Bay: These imports will be R15 525.62 per metric ton and R37.08 per kilogram, respectively, effective from October 2026.
While the government has outlined reasons to adjust prices, these hikes add further pressure on motorists who now have to dig deeper into their wallets.
Adding to this are their already stretched household budgets.
Meanwhile, investors have also expressed the pressures they face.
According to Makwe Fund manager and CIO Make Masilela, concern is rising that the cost of living crisis for consumers will weigh on the bottom lines of companies.
"Other than the issue of petrol and issue of interest rates, which have increased, we've got to deal with other utility bills, which continue to be up, the electricity prices, and we see that unemployment is not doing that great.
“And remember, our economy is 60% driven by consumer demand. So, if consumers are not doing that great, then unfortunately, our economy will continue to struggle, let alone issues with our trading partners, just domestic issues, not looking that great," he said.