The cost of fuel in South Africa has been on an upward trajectory, driven by ongoing tensions in the Middle East. Prior to recent developments, the expectation was that fuel prices would stabilize, especially with a temporary reduction in the general fuel levy introduced by the National Treasury.
However, on April 1, 2026, the price of petrol surged by R3 per litre, while diesel saw an even steeper increase of R7.06 per litre. This decisive moment marked a significant shift in the fuel pricing landscape, with projections from the Central Energy Fund suggesting that May’s fuel price increases could surpass those of April.
The immediate effects of these price hikes are being felt across South Africa. Alicia Raynard, an expert in consumer finance, noted, “Fuel is one of the most immediate pressures on household budgets, and increases of this scale change how people move, work and spend.” This sentiment reflects the growing concern among consumers as they adjust their spending habits in response to rising fuel costs.
In response to the price increases, Absa Rewards has increased its fuel cashback cap by R2,000 from April 1 to May 31, 2026. Customers can now earn up to 30 percent real cashback on fuel purchases through a partnership with Sasol, aiming to alleviate some of the financial burden caused by rising prices.
The situation is further complicated by the ongoing blockage of the Strait of Hormuz, which has kept oil prices elevated at around $144 per barrel. An anonymous industry expert commented, “Until those flows are actually moving again, the $144 print is less of a historical anomaly and more of a preview.” This highlights the uncertainty surrounding future fuel prices and the potential for further increases.
As consumers navigate these changes, the impact on household budgets and overall spending patterns will likely continue to evolve. The interplay between fuel prices and economic activity remains a critical area of focus for both consumers and policymakers in South Africa.
