Good news about diesel prices in South Africa while petrol users feel the pain

South Africans who use diesel-powered vehicles are set for significant relief at the pumps in June as the Department of Mineral and Petroleum Resources (DMPR) announced price cuts for the fuel.

Petrol users are not so lucky. While petrol prices should decline on the back of lower global oil prices and a stronger rand, the decrease resulting from these factors will not be enough to offset the reintroduction of the R1.50 per litre General Fuel Levy.

This reintroduction is part of the National Treasury’s efforts to unwind its fuel relief, introduced in April, which costs around R6 billion in tax revenue every month it is in place.

From June, R1.50 per litre will be added back for petrol, with the full relief terminating in July, when the remaining R1.50 will be added.

This turned the potential cut into an increase for petrol prices and narrowed the relief for diesel users.

On Monday, 1 June, the DMPR announced the following changes for fuel prices, which will take effect from 3 June 2026 –

• Petrol 93 – increase of 143 cents per litre
• Petrol 95 – increase of 143 cents per litre
• Diesel 0.05% – decrease of 325 cents per litre
• Diesel 0.005% – decrease of 262 cents per litre

The department attributed the decreases in petrol and diesel prices –without taking the reintroduction of the fuel levy into account – to lower international petroleum product prices in May.

While the average Brent crude oil price increased over the past month, due to the ongoing Middle East conflict, the average international product prices decreased.

The prices of middle distillates, including diesel and paraffin, saw the sharpest decreases, largely due to lower seasonal demand in the Northern hemisphere.

At the same time, South Africa’s rand appreciated against the United States dollar over the past month, which also helped lower fuel prices.

However, South African petrol users are not set to benefit from these factors, as the Treasury will reduce its fuel levy relief in June, adding R1.50 to fuel prices and offsetting any price decreases for petrol.

In April and May, South African motorists benefited from a R3 per litre reduction in the general fuel levy.

However, in June, this relief will be reduced by R1.50 per litre for petrol and R1.96 per litre for diesel. In July, the relief will fully be taken away, and the normal General Fuel Levy will be reinstated.