August fuel price adjustments bring relief for motorists, while higher diesel prices are expected to increase operating costs for transport and freight companies
South African motorists will welcome lower petrol prices this month, but the country’s logistics and freight industry is set to face higher operating costs as diesel prices increase from August 5.
The Department of Mineral and Petroleum Resources announced the latest fuel price adjustments, with both grades of petrol decreasing by 52 cents per litre. In contrast, diesel prices will increase by between R1.23 and R1.38 per litre, placing additional pressure on transport operators that rely heavily on diesel-powered fleets.
The department said the adjustments were influenced by a combination of international oil prices, fuel product costs, exchange rate movements and changes to the Slate Levy.
Brent crude oil prices declined during the review period, averaging US$82.37 per barrel compared with US$86.53 previously. While renewed tensions between the United States and Iran briefly pushed prices closer to the US$100 mark, the impact was offset by easing geopolitical tensions following a ceasefire memorandum of understanding between the two countries, as well as weaker global demand for crude oil.
International refined fuel prices also moved in different directions. Petrol prices fell during the period under review, contributing to lower pump prices. However, diesel and illuminating paraffin prices increased due to tighter global supply.
According to the department, the diesel market continues to be affected by the Russia-Ukraine conflict, which has resulted in restrictions on diesel exports from Russia. Supply constraints have also been exacerbated by reduced output from refineries in the Middle East operating below capacity.
The average rand exchange rate also weakened slightly against the US dollar during the review period, moving from R16.34 to R16.46. The depreciation increased the cost of importing fuel and partially offset the benefit of lower crude oil prices.
Another factor influencing this month’s adjustments is the implementation of the Slate Levy. The levy has been reduced from 113.94 cents per litre to 61.38 cents per litre, following an improvement in the cumulative slate balance, providing some relief to consumers despite rising diesel costs.
Effective from August 5, 2026, the fuel price adjustments are as follows:
- Petrol 93 (ULP & LRP): Decrease of 52.00 cents per litre.
- Petrol 95 (ULP & LRP): Decrease of 52.00 cents per litre.
- Diesel (0.05% sulphur): Increase of 138.44 cents per litre.
- Diesel (0.005% sulphur): Increase of 123.44 cents per litre.
- Illuminating Paraffin (wholesale): Increase of 152.00 cents per litre.
- SMNRP for Illuminating Paraffin: Increase of 203.00 cents per litre.
- Maximum Retail Price of LPGas: Decrease of 441.00 cents per kilogram in most parts of the country and an increase of 503.00 cents per kilogram for LPGas imported through the Port of Saldanha Bay in the Western Cape.
For the logistics sector, the latest adjustments present a mixed picture. While lower petrol prices will benefit motorists and businesses operating petrol-powered vehicles, the increase in diesel prices is likely to raise transport and distribution costs across the supply chain. Freight operators, courier companies and fleet owners may therefore face renewed pressure on operating margins, particularly as fuel remains one of the industry’s largest variable expenses.