Good News and Bad News for Fuel Prices in SA As June Adjustments Loom

• South African motorists were heading for a decent fuel price drop in June 2026, with petrol and diesel both showing strong over-recoveries at month-end
• The good news took a knock when it emerged that the government will be bringing back at least half of the fuel levy it temporarily cut in April and May
• Diesel users are still likely to see a cut, but petrol drivers will feel the pinch when the new prices kick in from 3 June 2026

With ongoing fuel hikes and global tensions running high, recent reports brought mixed feelings for South African motorists, who are checking their fuel price expectations for June.

A report published by BusinessTech on 29 May 2026 showed data from the Central Energy Fund showed that both petrol and diesel were sitting in solid over-recovery territory at the end of May. This means that pump prices were on track for a meaningful drop.

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Petrol 95 was showing an over-recovery of 42 cents per litre, while diesel was looking at cuts of between R4.93 and R5.57 per litre depending on the grade.

Under normal circumstances, that would have been straightforward good news. But there is a catch.

Why are petrol prices still going up?

The government introduced temporary fuel levy relief in April and May to soften the blow of rising global oil prices. This was partly driven by the conflict between the United States and Iran, which effectively shut down the Strait of Hormuz and triggered a major energy shock.

With a 60-day ceasefire now in place, oil prices dropped sharply by the end of May. That recovery in the market is what created the over-recovery figures.

But from 1 June, the National Treasury will bring back at least 50% of the R3.00 to R3.93 per litre levy it had cut. For petrol drivers, that means the R1.50 per litre levy coming back in wipes out the over-recovery and pushes petrol into a net increase of around R1.04 to R1.08 per litre.

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Diesel, on the other hand, has a large enough over-recovery to absorb the returning levy and still deliver a cut of between R2.96 and R3.60 per litre.

The official fuel price adjustments will be announced by the Department of Mineral and Petroleum Resources before 3 June 2026.

What is happening with the rand?

The rand was slightly stronger following a decision by the South African Reserve Bank to raise interest rates by 25 basis points.

This tends to make the rand more attractive to investors. The Reserve Bank said the increase was needed to bring inflation back under control after it jumped sharply in April.

More on fuel and the rising cost of living

• Briefly News recently reported on petrol stations across South Africa considering cutting their overnight trading hours due to rising costs and declining sales.
• South African motorists may soon face an additional RAF fee when renewing their vehicle licence discs.
• A new index tracking the cost of popular braai foods showed prices climbing again in May 2026.

Proofreading by Kelly Lippke, copy editor at Briefly.co.za.

Source: Briefly News