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Saturday, September 12, 2026
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The South African·South Africa·Saturday, September 12, 2026 at 07:29 AM

Fuel tax changes: What this means for your petrol price

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Alicia Naidoo

South African motorists are once again feeling the sting of tax-driven price surges. The latest round of fuel levy adjustments came to effect from Wednesday 2 September 2026 with an increase pushed by rising global oil prices.

WHAT IS DRIVING THE SEPTEMBER HIKE?

Petrol rose by R1.34 per litre and diesel by between R2.94 and R3.15 per litre, depending on the grade. The Department of Mineral and Petroleum Resources stated that most of the increase (roughly 80% of the petrol hike and around 93% of the diesel hike) was due to a higher international refined product prices. This was driven by ongoing US-Iran tensions and continued disruption risk around the Strait of Hormuz. Brent crude climbed from $82.37 to $87.88 a barrel during the review period.

THE FUEL TAX COMPONENT

Beyond global oil movements, two domestic levy mechanisms added directly to the price at the pump. The Self-Adjusting Slate Levy rose by 21.90 cents per litre, from 61.38 to 83.28 cents, after the balance fell to a negative R9.519 billion by the end of July. Also, a 4.9 cents per litre increase was added to petrol prices specifically to fund a wage adjustment for forecourt employees under the Motor Industry Bargaining Council’s agreement.

This latest hike caps a volatile year for fuel taxation. Earlier in 2026, Treasury temporarily slashed the General Fuel Levy by R3.00 per litre for petrol and R3.93 for diesel to cushion consumers from a spike in oil prices. This was a result of the then-escalating Middle East tensions. That relief was phased out in two stages with half withdrawn in June, the rest in July. This was before the General Fuel Levy returned fully to its baseline rate of R4.10 per litre for petrol and R3.93 for diesel.

For motorists, the upshot is that pump prices are being squeezed from two directions at the same time, global oil costs remain elevated due to geopolitical tension. While the temporary tax relief that softened the blow earlier in the year has now fully unwound.

October fuel prices are set to ‘smash’ South African records.

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Fuel tax changes: What this means for your petrol price — KioskNews