South Africa’s Minister of Finance, Enoch Godongwana, has made good on his promise… the fuel levy increase has come into effect from today. This refers to the tax on every litre you buy.

But while this hike is very much a reality, petrol prices are actually lowered thanks to the rand eating its protein, lifting its weights and getting stronger (But for how much longer? We’re holding our breath).

Here’s everything you need to know.

Let’s recap a bit

The government’s budget plans this year have been a mess – postponed, then protested over a VAT increase, and finally culminated in Budget 3.0. In this final plan, VAT did not increase, but the fuel levy did. This is needed to fill a R3.5 billion gap.

This is the first fuel tax increase in three years! Unleaded increased by 16c and diesel by 15c.

So while current prices are lower (down 5c a litre for both grades of petrol and 37c a litre for diesel), you’re not saving as much as you could have been if there was no fuel levy jump in the first place. 

And if the EFF had their way there would not have been. Malema’s party tried to block the tax increase in court, arguing that it burdens poor South Africans; “It deepens inequality and undermines access to essential goods and services. We are committed to fighting the fuel levy increase in court and in parliament,” the party said. 

But the Western Cape High Court disagreed. Since they said the National Treasury’s decision was within its legal rights, the levy increase is here to stay.

What are fuel prices now?

First up, here are the official changes:

FuelChange
Petrol 93decrease of 5 cents per litre
Petrol 95decrease of 5 cents per litre
Diesel 0.05% (wholesale)decrease of 37 cents per litre
Diesel 0.005% (wholesale)decrease of 37 cents per litre
Illuminating Paraffin (Wholesale)decrease of 56 cents per litre
LPGASdecrease of 89 cents per kg

Table sourced from Business Tech 

Here’s how the new prices will show up at petrol stations (diesel prices are listed at the wholesale level, so the actual price at the pump might be different):

InlandMay OfficialJune Official
93 PetrolR21.29R21.24
95 PetrolR21.40R21.35
Diesel 0.05% (wholesale)R18.90R18.53
Diesel 0.005% (wholesale)R18.94R18.57
Illuminating ParaffinR13.05R12.49
LPGAS (per kg)R38.23R37.34
CoastalMay OfficialJune Official
93 PetrolR20.50R20.45
95 PetrolR20.57R20.52
Diesel 0.05% (wholesale)R18.07R17.70
Diesel 0.005% (wholesale)R18.18R17.81
Illuminating ParaffinR12.03R11.47
LPGAS (per kg)R35.07R34.18

        Table sourced from Business Tech 

So, where does this leave us? In classic South African fashion, it’s complicated. Yes, we’re paying less at the pump, for now, but that saving is blunted by the fuel levy hike quietly padding government coffers. It’s a reminder that even when prices drop, policy decisions can shift the goalposts. With the rand on an unexpected winning streak and global markets throwing curveballs, our short-term relief might be just that — short. So enjoy the breather, but don’t breathe too easily. The next twist in SA’s economic saga is likely just around the corner.

lona@explain.co.za |  + posts

Lona is a recent graduate with an Honours degree in Journalism and Media Studies from Wits University. Passionate about storytelling, she is eager to learn, grow, and hone her writing skills.