Petrol Price June 2026: Brace for Price Hikes

South African motorists are set to feel renewed pressure at the pumps after the National Treasury confirmed that the temporary General Fuel Levy relief introduced earlier this year will officially begin phasing out from June 2026.

The emergency fuel tax relief, initially introduced in April to cushion consumers from soaring global oil prices linked to Middle East geopolitical tensions, will now be gradually withdrawn over a two-month period.

The move is expected to trigger another sharp increase in petrol prices, although diesel users could still receive some relief due to favourable international market conditions.

Government begins phasing out fuel tax relief

The temporary levy reduction formed part of government efforts to soften the impact of rapidly rising international oil prices earlier this year.

In April, National Treasury introduced a major R3.00 per litre cut to fuel taxes, with diesel relief later increasing to R3.93 per litre in May, effectively reducing the active diesel levy to zero.

However, Treasury has now confirmed that the relief programme is ending as government moves to rebalance the national budget.

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How the fuel levy phase-out will work

June 2026: First phase begins

From Wednesday, 3 June 2026, half of the temporary tax relief will be removed:

• Petrol levy increases by R1.50 per litre
• Diesel levy increases by R1.97 per litre

July 2026: Full return to standard fuel levies

From 1 July 2026, the fuel tax holiday officially ends completely, with levies returning to their normal baseline rates.

Petrol levies are expected to return to around R4.10 per litre.

Expected June fuel price impact

The phased withdrawal creates mixed expectations for petrol and diesel users.

Petrol prices expected to rise sharply

International fuel recoveries have not been strong enough to fully offset the returning tax burden.

Current projections suggest motorists could face:

• Petrol price hikes of around R1.40 to R1.65 per litre

This means inland petrol prices could move back toward record territory once again.

Diesel users could still see relief

Despite the levy increase, diesel prices are expected to benefit from strong international over-recoveries.

As a result, diesel motorists may still see:

• Net diesel price cuts of roughly R2.00 to R3.00 per litre

This comes after diesel prices surged to historic highs earlier this year.

Why fuel prices remain volatile

Fuel prices continue responding to several global and local pressures, including:

• Middle East geopolitical instability
• rising Brent crude oil prices
• shipping and supply chain disruptions
• rand-dollar exchange rate weakness
• international commodity market volatility

South Africa’s fuel pricing structure remains heavily influenced by both global oil prices and local taxes and levies.

Rising pressure on South African households

Higher petrol prices are expected to place additional strain on households already dealing with:

• rising food costs
• elevated transport expenses
• electricity price increases
• high interest rates
• broader inflation pressures

Economists continue warning that fuel price increases often ripple through the wider economy, increasing the cost of goods and services across multiple sectors.

Official announcement still pending

The Department of Mineral and Petroleum Resources is expected to officially confirm the final June 2026 fuel price adjustments shortly before they take effect on the first Wednesday of June.

The final pricing will depend on:

• the latest oil market movements
• the rand exchange rate
• month-end recovery calculations

The bottom line

South Africans are set to lose a major layer of fuel price protection from June as government phases out its temporary fuel levy relief programme.

While diesel users may still receive some short-term relief, petrol motorists are bracing for another painful increase at the pumps.

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