Six factors driving South Africa's fuel price hike on Wednesday

The South African government has announced six key reasons behind the upcoming fuel price hikes set to take effect on Wednesday. The adjustments are driven by a mix of local and international factors, according to Lerato Ntsoko, head of communications at the Department of Mineral and Petroleum Resources. The country imports both crude oil and finished products, which are priced at international levels including importation costs.

Among the factors contributing to the price increase are higher crude oil prices, with Brent Crude averaging $101 USD, up from $87.89 USD, due to ongoing tensions between the US and Iran, high shipping costs, and decreasing inventories. Additionally, international petroleum product prices for petrol, diesel, and illuminating paraffin have risen because of product shortages linked to lower global inventories.

The rand/dollar exchange rate has also played a role, with the rand appreciating slightly against the USD, leading to a lower contribution to Basic Fuel Prices for petrol, diesel, and illuminating paraffin. Other factors include the slate levy implementation, which has resulted in a negative balance of R10.45 billion for petrol and diesel at the end of August 2026, and changes in the octane differential between 93 and 95 petrol grades, which will affect retail prices from October 2026.

Maximum Refinery Gate prices for LPG imports through Saldanha Bay will also be adjusted to R15,525.62 per metric ton and R37.08 per kilogram, effective from October 2026. While these adjustments are necessary, they add further financial strain on motorists, who are already facing stretched household budgets.