South African motorists will pay more at the pumps from 4 March after the Department of Petroleum and Mineral Resources confirmed petrol rises by 20 cents per litre and diesel by 60 to 65 cents per litre depending on grade, ending two consecutive months of price cuts driven by falling global oil prices.
The increases are driven by higher international petroleum product prices during February, compounded by ongoing geopolitical tensions in the Middle East affecting supply expectations. A stronger rand, which averaged R15.9959 to the dollar over the review period compared to R16.3054 the month before, cushioned the blow significantly, preventing what would otherwise have been increases of around 35 cents on petrol and close to 80 cents on diesel. April is set to bring further pressure. Finance Minister Enoch Godongwana confirmed in the 2026 Budget Speech that fuel levies will rise by a combined 21 cents per litre from the start of the new financial year, made up of increases to the General Fuel Levy, the Road Accident Fund levy and the carbon fuel levy. That means South African motorists face a double hit: market-driven increases in March and legislated levy increases in April, with international oil prices already spiking further on Middle East tensions in early March.
The Bigger Picture South Africa’s fuel price formula exposes consumers directly to two forces simultaneously: global oil market volatility and domestic fiscal decisions. The rand’s strength currently provides meaningful protection, but that buffer could narrow quickly if geopolitical developments push oil toward higher levels while investment sentiment shifts. The levy increases in April are structurally permanent additions to the cost base, not cyclical adjustments, meaning the floor for fuel prices has been raised regardless of where Brent crude trades.
Source: The South African, BusinessTech
