South African motorists are bracing for a significant fuel hike in April, with forecasts indicating increases of more than R3 for petrol and R5 for diesel, driven by soaring international oil prices and a weaker rand, according to the Department of Mineral Resources and Energy.
This unprecedented surge is potentially resulting in the largest monthly increases in history, with the extent of the increases remaining difficult to predict at this early stage of the month.
Fuel Price Increases
The latest data from the Central Energy Fund is painting a grim picture, with the ‘best case scenario’ at present being a petrol price hike of R2.41 for petrol and diesel increases of up to R4.50 for 50ppm diesel.
This prediction is, however, based on the month average, which has yet to fully factor in the sharp oil price surges that took place during the latter half of the past week.
Current Fuel Prices
Daily data released on Friday showed a diesel under-recovery of R7 per litre, with petrol around R3.78 in the red, with 95 Unleaded petrol currently costing R19.47 at the coast and R20.30 in Gauteng, where 93 Unleaded retails at R20.19.
The wholesale price of diesel is currently pegged at R17.84 at the coast and R19.17 inland, with Brent Crude oil trading at $87 per barrel, which is 36% higher than its February average of $64.
Oil prices have risen primarily as a result of the war sparked by US and Israeli attacks on Iran, which has injected significant geopolitical risk into energy markets, with much of the heightened price pressure stemming from concerns around the Strait of Hormuz, which Iran has threatened to disrupt, as explained on Wikipedia.
A weaker rand is also taking its toll, with the local currency having depreciated from its February average of $16.31 to the US dollar, and the final blow will be dealt by the increase in fuel taxes that was announced by Finance Minister Enoch Godongwana during his 2026 Budget Speech.
From April 1, South Africans will be paying an additional 21 cents per litre in fuel taxes, following increases to the General Fuel Levy (9 cents), Carbon Levy (5 cents) and Road Accident Fund levy (7 cents), with drivers contributing a total of R4.10 per litre to the GFL and R2.25 to the embattled RAF.
Here are some key points to consider:
- Fuel prices are expected to increase by more than R3 for petrol and R5 for diesel in April.
- The increases are driven by soaring international oil prices and a weaker rand.
- The final blow will be dealt by the increase in fuel taxes announced by Finance Minister Enoch Godongwana.
As the situation continues to unfold, South African motorists will be keeping a close eye on the fuel prices and the impact it will have on their daily lives.
