Fuel prices are set to surge to record levels from midnight on Wednesday, 1 April 2026, with petrol increasing by just over R3 per litre and diesel by more than R7 per litre.
The sharp adjustment, confirmed by the Department of Minerals and Energy Resources on Tuesday afternoon, 31 March 2026, marks one of the most significant hikes in recent years and reflects mounting global and domestic pressures on South Africa’s fuel pricing structure.
Fuel price increases are being driven by a mix of global and local pressures, led by a sharp surge in Brent crude oil prices, which climbed from $69.08 to $93.67 during the review period. This spike is largely linked to ongoing tensions between the United States and Iran, which have disrupted key supply routes, particularly through the Strait of Hormuz.
As global oil prices rose, international fuel product prices followed, pushing up South Africa’s Basic Fuel Price. This added R5.26/l to petrol, R9.49/l to diesel and R10.80/l to illuminating paraffin. While propane and butane prices remained stable due to seasonal demand shifts, shipping costs increased amid Middle East tensions.
The weaker rand further compounded the pressure, depreciating from R16.00 to R16.64 against the US dollar. This contributed an additional 56.18c/l to petrol, 78.07c/l to diesel and 83.21c/l to paraffin.
On the fiscal side, the slate levy remains unchanged at 0.00c/l, with a positive balance of R4.93 billion recorded at the end of February 2026.
However, other levies are increasing. The general fuel levy rises by 9c/l for petrol and 8c/l for diesel, while the carbon levy increases by 5c/l and 6c/l respectively. The RAF levy also increases by 7c/l, bringing it to 225c/l.
To soften the blow, government has introduced a temporary R3.00/l reduction in the general fuel levy from 1 April to 5 May 2026.
Additional pressure comes from higher transport costs, with revised zone differentials approved across the country. These vary by region, with increases ranging from 4.2c/l to 5.7c/l for petrol and diesel, and up to 8.3c/l for paraffin.
As a result, the following increases will take effect from Wednesday, 1 April 2026:
• Petrol 93 & 95: +R3.06/l
• Diesel (0.05%): +R7.37/l
• Diesel (0.005%): +R7.51/l
• Illuminating paraffin: +R11.67/l
As the adjustment takes effect at midnight, mounting pressure is already being felt across the country. Industry figures indicate that 143 service stations have run out of diesel, while 136 have reportedly exhausted their petrol supplies, underscoring the scale of demand as motorists rush to refuel ahead of the increase.
Against this national backdrop, attention has increasingly shifted to local supply conditions.
In Newcastle, where residents are preparing for the financial implications of the hikes, concerns have emerged over whether fuelling stations can sustain demand in the hours leading up to the price change.
In this regard, early indications suggest a mixed picture. Speaking to Newcastillian News, a fuel attendant from Sasol confirmed that while petrol supply remains steady, diesel availability has come under strain due to heightened demand.
“Motorists have been bulk buying since the news broke that there might be shortages and massive price hikes, and our one fuel station ran out of diesel, but petrol is still fine. While we understand this is a concern for many motorists, it is important to realise that this is not our fault, as the suppliers who deliver our stock will be delivering more stock this week,” the attendant explained.
Notably, although one site has experienced diesel shortages, other stations within the network were said to still hold sufficient stock, suggesting that supply constraints remain uneven rather than systemic at a local level.
By contrast, other operators have reported more stable conditions.
Staff from a local Total indicated that their operations remain unaffected, noting that both diesel and petrol supplies are currently adequate.
“We received fresh diesel stock this morning (31 March 2026), and have more than enough petrol available, and motorists can rest assured that fuel will be available for them,” a staff member said. This contrast highlights how supply pressures are being experienced differently across individual sites.
At a broader level, however, the Fuels Industry Association of South Africa has sought to provide reassurance.
The Association maintains that the country’s overall fuel supply remains stable, with adequate volumes of key petroleum products available. Even so, it acknowledged that conditions are presently tight, particularly in the diesel segment, which is facing heightened pressure ahead of the 1 April adjustment.
Expanding on these constraints, the Association pointed to a combination of structural and short-term factors.
“It is noted that the planned shutdown of the Cape Town refinery is expected to be completed in mid-April 2026. For the duration of the shutdown imports had been arranged, and no widespread disruptions are anticipated,” it stated.
However, it further cautioned that above-normal demand at service stations, coupled with limited road tanker capacity, is contributing to delivery delays and intermittent stock-outs in certain areas.
As a result, while reports of dry sites have increased, these are largely being driven by surging diesel demand rather than a fundamental supply shortfall. In response, suppliers are continuing efforts to stabilise distribution and maintain continuity.
Meanwhile, the knock-on effects are becoming increasingly evident within the public transport sector.
The South African National Taxi Council (SANTACO) has raised concerns about the growing operational strain, warning that panic buying and supply constraints are beginning to disrupt daily taxi operations.
According to the council, reports of shortages, refuelling limitations, and rising diesel costs are already placing pressure on taxi operators and associations across the country.
In particular, diesel price increases have drawn scrutiny, with claims that some fuel stations are inflating prices amid comparatively lighter regulation than petrol.
Against this backdrop, SANTACO has called for urgent intervention.
“We are acting with urgency to stabilise the situation and protect both operators and commuters. We call on the government to immediately provide clear direction on fuel price expectations and to work with us on practical relief measures. The taxi industry remains committed to keeping South Africa moving, and we will do so in a way that balances sustainability with the needs of our commuters,” said SANTACO President Abnar Tsebe.
In terms of immediate implications, the council reiterated that individual taxi associations retain the authority to determine fare adjustments based on prevailing operational pressures.
“While no uniform fare increase has been declared, some taxi associations have begun to communicate increases with their commuters. Therefore, commuters are advised that all changes and increases will be communicated transparently through official notice boards at taxi ranks, inside vehicles, and via verified association communication platforms,” SANTACO said.
However, it also sought to contextualise these potential increases.
The council emphasised that fare adjustments are not typically implemented in response to fuel price fluctuations alone, given their often temporary nature. Instead, decisions are made following a broader assessment of operational costs, including maintenance, financing, licensing, and other overheads.
“It is important for all stakeholders to understand that any fare increases currently under consideration are a direct response to the exceptional and immediate pressures already being experienced on the ground, including supply constraints and rising costs at some fuel stations,” SANTACO added.
Adding to these concerns, stakeholders within the agricultural sector have also raised alarm over both rising fuel costs and supply constraints. Speaking to Newcastillian News on condition of anonymity, a local farmer said that producers in the Newcastle area are increasingly worried about diesel availability and escalating tariffs.
“There are some farmers in the Newcastle area who will not be harvesting, due to some of our diesel suppliers having to ration their stock due to the current uncertainty about diesel supplies, and then there is the price, which will make it tougher for farmers and their workers to work the lands, as we can’t keep forking out this much money, simply to try and grow food for the public,” said the farmer.
In parallel, AgriSA and Agbiz, which represent the full agricultural value chain in South Africa, have called on the Department of Mineral Resources and Energy to urgently consider a temporary adjustment to the current fuel pricing mechanism in response to emerging supply constraints in rural areas.
The organisations noted that this call follows the completion of a joint survey conducted on 24 and 27 March 2026 among farmers and fuel retailers servicing the agricultural sector. While public statements have suggested that national fuel supply remains stable, the survey points to a more complex reality at farm level.
As explained by Agbiz CEO Theo Boshoff and AgriSA COO Jolanda Andrag, respondents across multiple regions reported constrained supply and increasing instances of rationing, with retailers limiting volumes due to uncertainty around replenishment.
According to the organisations, these constraints are beginning to affect normal farming and agribusiness operations at a critical stage in the production cycle. Moreover, AgriSA and Agbiz emphasised that the current situation does not appear to be driven by a single identifiable factor; rather, it reflects a convergence of global oil market volatility, supply chain pressures and behavioural responses within the market.
In such conditions, they stressed, pricing signals play a pivotal role.
To stabilise the situation and reduce the risk of further disruption, AgriSA and Agbiz have proposed an immediate, out-of-cycle fuel price adjustment to better reflect prevailing market conditions, alongside the introduction of temporary, more frequent reviews in place of the standard monthly adjustment for the duration of the current energy price volatility.
“This is in line with what associations representing fuel retailers has also asked for. These measures are not intended to increase costs to the sector, but rather to ensure that pricing reflects underlying conditions more accurately, thereby reducing incentives for panic buying or supply withholding,” the organisations said.
Furthermore, the agricultural bodies underscored the scale of the risk, noting that fuel typically accounts for between 12% and 18% of production costs in agriculture.
“Any disruption in availability, particularly during peak planting, harvesting, or transport periods, poses a direct risk to food production, supply chains, and ultimately food security.”
As the price adjustments take effect, the immediate concern is not only the financial burden on consumers, but also the strain being placed on critical sectors that rely heavily on fuel stability.
While authorities maintain that national supply remains intact, the uneven distribution of stock and mounting demand pressures are already exposing vulnerabilities in transport and agriculture. This disconnect between national assurances and on-the-ground realities is likely to remain a focal point in the days ahead.
Ultimately, the coming weeks will test both the resilience of supply chains and the effectiveness of interventions aimed at easing pressure across the economy.
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