The official fuel price adjustments for April have been announced.
Image: AI / Sora
South Africans will be hit with unprecedented fuel price increases on Wednesday, April 1, after the war in the Middle East sent international oil prices surging in the past month.
However, National Treasury and the Department of Mineral and Petroleum Resources (DMPR) have jointly announced a short-term relief measure in the form of a R3 tax reprieve for petrol and diesel for the month of April. This will temporarily reduce the general fuel levy from R4.10 per litre to R1.10 per litre on petrol and from R3.93 to 93 cents in the case of diesel.
The DMPR announced on Tuesday that both grades of petrol will see a price increase of R3.06 per litre, while diesel will increase by between R7.37 (500ppm) and R7.51 (50ppm). Illuminating paraffin will see a price hike of R11.67 per litre.
South Africa's official fuel price increases.
Image: IOL
After the price adjustments take effect on Wednesday, April 1, a litre of 95 Unleaded petrol will cost R22.53 at the coast and R23.36 in the inland regions, where 93 Unleaded will cost R23.25. The wholesale price of 50ppm diesel will rise to R25.35 at the coast and R26.11 in Gauteng.
Treasury said the relief measure, which will cost the government around R6 billion per month, will be re-evaluated on a monthly basis for the following two months. The relief measure is designed to be fiscally neutral, it said, and the government will implement mechanisms to recoup the foregone revenue within the fiscal framework approved during the 2026 Budget.
Government further reiterated that there is sufficient fuel supply in the country to meet current and projected demand. It said the shortages reported in certain areas were largely due to localised distribution and logistical challenges driven by panic buying rather than a lack of national fuel stocks. These should self-correct in the coming days, it added.
Government is also exploring a broader package of measures to support households and key sectors of the economy, of which further details will be announced at a later stage.
Although the South African rand has weakened due to uncertainty caused by recent conflict in the Middle East, the primary reason for April’s fuel price hikes is significantly higher international oil prices, also driven by the war.
Brent Crude oil surged by around 38% since the previous review period, averaging around $94 per barrel during the current review period. This is a significant increase over its average of $69 during the preceding month.
Rising fuel prices in April are expected to feed through the economy, with the transport and logistics sectors likely to bear the brunt. Higher diesel costs, in particular, tend to push up operating expenses across supply chains, placing further strain on businesses already grappling with weak demand.
For consumers, the impact is usually felt in the form of higher prices for essentials such as food and household goods, as distribution costs increase. This fuel-driven pressure is also likely to complicate South Africa’s inflation outlook, potentially reducing the scope for interest rate cuts.
The South African National Taxi Council (SANTACO) has warned that taxi fare increases may be imminent as operators grapple with fuel shortages, rising diesel costs, and supply constraints across the country.
In a statement, the council said growing uncertainty around projected fuel price increases has already begun to affect daily operations.
IOL Motoring