South Africa Raises Fuel Prices Amid Global Oil Volatility

The Department of Mineral Resources and Energy announced steep fuel price increases effective September 2, 2026, citing global oil supply disruptions. In Gauteng, 95-grade petrol rose by R1.34 to R26.92 per litre, while wholesale diesel increased by up to R3.15 to R29.11 per litre. Other adjustments included increases for illuminating paraffin and liquefied petroleum gas. These hikes were driven by Brent crude oil exceeding $90 a barrel following new hostilities between the United States and Iran, which disrupted cargo flow through the Strait of Hormuz, and the ongoing Russia-Ukraine conflict.

Diesel prices in South Africa rose by an average of 11.35%, a spike that threatens the South African Reserve Bank's 3% inflation target. While a stronger rand provided some offset, the surge increased operational costs for freight operators. In the United States, Gulf Coast diesel prices reached an all-time record of $4.6973 per gallon, while the Federal Government of Russia extended its diesel export ban through September 30.

Industry reactions highlight the economic strain on logistics. Gavin Kelly, CEO of the Road Freight Association, warned that transport companies and fleet operators must brace for increased pressure on operational costs. Conversely, the energy company Sasol reported a 17% increase in profit resulting from the price surge. Meanwhile, the Government of Spain adjusted its own fuel-tax discounts on September 1 to mitigate the impact of Middle East conflicts.