South African motorists are facing the most expensive petrol prices ever recorded after the latest fuel adjustments pushed inland 95 unleaded petrol above the R28 per litre mark for the first time.
The Department of Mineral and Petroleum Resources confirmed that inland 95 unleaded petrol increased by R1.43 per litre from Wednesday, 3 June 2026, taking the retail price to a record R28.06 per litre.
The new price surpasses the previous all-time high of R26.74 per litre reached in July 2022 during the global energy shock that followed Russia’s invasion of Ukraine.
The increase comes despite signs that international fuel market conditions had begun improving toward the end of May.
Global oil prices experienced extreme volatility throughout April and May as escalating tensions between the United States and Iran threatened energy supply routes in the Middle East. Concerns over disruptions through the Strait of Hormuz, one of the world’s most important oil transit corridors, contributed to a sharp rise in crude oil prices.
Brent crude climbed from below $94 per barrel to as high as $138 per barrel in April before gradually easing later in May.
Tax changes outweigh lower oil prices
Under normal market conditions, easing oil prices and a relatively stable rand would likely have resulted in lower fuel prices.
Throughout May, the rand traded within a comparatively stable range against the US dollar, helping reduce some of the pressure caused by higher international oil prices.
However, government tax measures ultimately had a greater impact on June’s fuel price calculations.
Earlier this year, Finance Minister Enoch Godongwana introduced temporary fuel levy relief to protect consumers from rapidly rising energy costs. The General Fuel Levy was reduced by R3.00 per litre on petrol and R3.93 per litre on diesel.
That temporary relief is now being partially withdrawn.
From June, Treasury reinstated half of the levy reduction, adding R1.50 per litre back onto petrol prices. Authorities also increased the Slate Levy to R1.58 per litre in an effort to recover an industry shortfall estimated at R14.2 billion.
These adjustments offset much of the benefit that would otherwise have come from lower international fuel prices.
Diesel users receive some relief
While petrol users face another record increase, diesel consumers are seeing some welcome relief.
Diesel prices declined by between R2.62 and R3.25 per litre despite the partial return of fuel levy charges. Inland 0.005% diesel wholesale prices dropped to R29.26 per litre after reaching record levels in May.
Even with the latest reduction, fuel costs remain significantly higher than at the beginning of 2026.
Petrol prices have risen by R7.31 per litre since January, while diesel prices remain R10.74 per litre above January levels despite recent declines.
Industry representatives have warned that higher fuel prices continue to place pressure on households already struggling with rising living costs.
The South African Petroleum Retailers Association (SAPRA) welcomed lower diesel, paraffin and LPG prices, noting that transport-dependent sectors, farmers and small businesses could benefit from reduced operating costs.
However, SAPRA National Chair Henry van der Merwe stressed that filling station operators do not directly profit from higher fuel prices because retail fuel margins are regulated by government.
According to the association, although some fuel categories have become cheaper, the broader operating environment remains difficult and long-term sustainability challenges continue to face the petroleum retail sector.
Source: Department of Mineral and Petroleum Resources, SAPRA