JOHANNESBURG, May 5, 2026, 18:23 SAST
South Africa’s Central Energy Fund corrected a diesel pricing error on Tuesday, cutting the May wholesale diesel increase to R5.27 a litre from an earlier R6.19 after a fuel-levy decimal mistake. News24 reported the error was caused by subtracting 0.93 cents from the diesel fuel levy instead of 93 cents.
The fix is still no real reprieve. From Wednesday, wholesale diesel rises 526.7 cents a litre for both regulated sulphur grades, while both 93 and 95 petrol increase by 327 cents a litre, the corrected CEF schedule showed.
That matters because diesel still moves above R30 a litre at wholesale level, a cost line for freight, farms, buses, taxis and firms running backup generators. eNCA, in a Tuesday news brief, framed the fuel surge as part of a wider oil-tension and rand-pressure story with risks for the broader economy.
The Department of Mineral and Petroleum Resources said the average Brent crude price rose to $101 a barrel in the review period from $93.67, citing continued U.S.-Iran tension, the closure of the Strait of Hormuz and damage to key infrastructure. Middle distillates — diesel and paraffin — rose more than petrol because of higher demand and reduced Persian Gulf supply, the department said.
There is also a local accounting catch. A slate levy, a charge used when regulated fuel prices have not covered import or production costs, adds 122.70 cents a litre to petrol and diesel from May 6 after the petrol and diesel slate balance stood R14.173 billion in the red at end-March.
Petrol gets no benefit from Tuesday’s correction because the missing extra relief applied to diesel. BusinessTech reported that the petrol adjustment was unchanged, with illuminating paraffin up R4.22 a litre at wholesale level and LPGas in Gauteng up R5.07 a kilogram.
Economists warned the hit would spread quickly. Momentum Senior Economist Sanisha Packirismy told SABC the increase acts “like a tax on everyday living,” while Nedbank economist Johannes Khoza said inflation risks were “skewed to the upside” if fuel and rand pressure persisted. SABC News
Henry van der Merwe, chair of the South African Petroleum Retailers Association, said “inflationary pressures will intensify” even with levy relief. South African Reserve Bank Governor Lesetja Kganyago also warned this week that fuel shocks can become broader price pressure if second-round effects show up in wages and expectations. Business Day
But the path from here is not fixed. Because South Africa resets fuel prices monthly using global oil prices, product costs and the rand, a calmer oil market or stronger currency could soften later moves; the downside is that temporary levy relief is due to be added back in stages, with BusinessTech reporting R1.50 a litre for petrol and R1.97 for diesel returning in June, and the rest in July.
