May Fuel Price Increase South Africa 2026 Levy Impact

May Fuel Price Increase South Africa 2026 Levy Impact

The May fuel price increase in South Africa 2026 is under pressure as new data from the Central Energy Fund shows continued strain on petrol and diesel prices.

There is now a second factor at play. The government’s temporary fuel levy relief is set to expire soon, which could push prices higher.

This matters because fuel prices affect transport, food costs and daily household spending.

Direct answer: Will fuel prices increase in May 2026?

Fuel prices in South Africa may increase again in May 2026 due to ongoing under-recoveries and the possible end of the temporary fuel levy reduction, although government has not yet confirmed whether the relief will be extended.

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What the Central Energy Fund data shows

The Central Energy Fund tracks daily under-recoveries used to calculate monthly fuel prices.

Current trends show:

  • Petrol remains under pressure
  • Diesel is facing stronger increases
  • Global volatility continues to drive costs

Earlier projections pointed to petrol increases above R2 per litre and diesel increases above R4 per litre. These figures could shift depending on market conditions before month-end.

What the fuel levy relief means right now

The government introduced a temporary R3 per litre cut to the general fuel levy from 1 April to 5 May 2026.

This helped soften April’s increases, which still saw:

  • Petrol rise by just over R3 per litre
  • Diesel increase by more than R7 per litre

Without this intervention, the increases would have been significantly higher.

What happens if the levy relief ends

If the levy reduction is not extended:

  • The R3 per litre saving could fall away
  • Fuel prices would increase further
  • Motorists would feel the full impact of global oil prices

This would add direct pressure on top of current under-recoveries.

What happens if the levy relief is extended

If government extends the relief:

  • Fuel price increases could be limited
  • Short-term pressure on consumers may ease
  • The overall impact of global oil prices could be softened

Government has indicated it will review the situation closer to the end of the month.

Why fuel prices are rising

Global oil prices

Tensions involving Iran have disrupted supply and pushed oil prices higher.

Weak rand

A weaker rand increases the cost of imported fuel.

Taxes and levies

Fuel prices include government levies, which directly affect the final price at the pump.

What this means for South Africans

Higher fuel prices impact the wider economy.

Expect:

  • Increased transport costs
  • Higher food prices
  • Pressure on small businesses
  • Rising inflation

Diesel costs are especially important for logistics and agriculture.

What to watch before the May announcement

Fuel prices are confirmed at the end of each month.

Key factors include:

  • Whether levy relief is extended
  • Oil price movement
  • Rand performance

These will determine whether prices rise further or stabilise.

FAQs

When will the May fuel price be announced?

The official price is usually announced at the end of April and takes effect in early May.

What is the fuel levy?

It is a government tax included in fuel prices, used to fund national spending and road-related costs.

Is the levy cut guaranteed to continue?

No. The current relief is temporary and government has not yet confirmed whether it will be extended.

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