Forgotten levy has diesel users paying R1.58 more per litre

While the announced diesel price reduction for June has been welcomed by South African motorists, other factors at play mean the relief may not be as great as it seems.

This includes an increase in the slate levy of R0.35 per litre, with this particular administered element now contributing R1.58 per litre to the diesel price at the pump.

The Department of Mineral and Petroleum Resources (DMPR) announced on 1 June 2026 that diesel prices would decrease between R2.62 and R3.25 per litre, depending on the sulphur content.

Petrol prices on the other hand increased for the third month in a row, going up by R1.43 per litre for both 93 and 95 octane grades.

The price of petrol was set to decrease alongside that of diesel, but this was offset by the partial reintroduction of the general fuel levy.

From 3 June, R1.50 per litre was added back to the price of petrol, with the remaining R1.50 to be added back at the beginning of July.

Road Freight Association (RFA) CEO Gavin Kelly said that while the diesel relief is a welcome reprieve for road freight operators, it was not as great as it could have been.

“Diesel is the lifeblood of the road freight sector, accounting for between 30% and 50% of a typical operator’s total cost base,” Kelly said.

“The diesel decrease will provide some relief to operators of heavy commercial vehicles, who have absorbed elevated fuel costs over recent months.”

Kelly cautioned that there were two significant factors which had significantly diminished the actual relief, with the first being an increase in the slate levy.

The DMPR announced a R0.35 per litre increase in the slate levy in an attempt to recover an R18.28 billion under-recovery in fuel prices, with the levy now sitting at R1.58 per litre.

Alongside this, the halving of the general fuel levy meant that R1.96 per litre was added back to the price of diesel in June, while the other half is set to be added back in July.

“Together, these factors mean the net benefit to operators, and therefore the reduction on fiscal pressures through the greater economy, is considerably smaller than it first appears,” Kelly said.

Road freight industry faces ongoing pressures

Despite the diesel price relief offering some level of respite for road freight operators, the sector continues to face significant operational challenges.

Issues such as deteriorating road infrastructure, rising toll costs, currency fluctuations, and a large skills gap exacerbate the financial strain caused by fuel costs.

Alongside this, Kelly said that while the diesel price decrease will alleviate some pressure, the petrol price increase will still be sharply felt across the industry.

“The petrol increase will be felt across lighter commercial fleets, company vehicles, and critically by employees whose commuting costs directly influence wage expectations,” Kelly said.

“When household budgets are under pressure from rising petrol prices, the knock-on effects on consumer spending and freight demand are real.”

Fuel price increases since the start of the Middle East war have significantly raised the operating costs of transport companies within the freight and logistics sector.

While much of this cost was initially absorbed, this cannot continue forever and these higher costs will eventually have to be passed down the supply chain towards consumers.

If these companies are then also unable to recoup their losses through the passing of costs on to their customers, these businesses may have no other choice but to shut their doors.

According to Kelly, at least 11 member organisations of the RFA had already been forced to close down by the beginning of May.

This, he said, only accounted for the members that had informed the RFA of their closure, and he emphasised that there were potentially even more businesses that had closed which he didn’t know about.

“South Africa’s logistics competitiveness, and the cost of living for ordinary citizens, depends on a stable, predictable, and equitable fuel pricing framework,” Kelly said.

The RFA called on the DMRP and the National Treasury to undertake three critical steps in order to mitigate the ongoing challenges faced by the road freight industry.

These include addressing the slate deficit through a credible long-term strategy, a structured withdrawal of the fuel levy relief, and reforms to reduce the sector’s vulnerability to external price shocks.