The price of petrol has jumped again, by a further 90 cents per litre, increasing from E25.27 per litre of ULP 95 to E26.17 a litre – the highest in history. The new price kicks in at midnight tomorrow (Thursday 4 June 2026).
New fuel prices just released by the Ministry of Natural Resources and Energy however show a slight E2.40 per litre reduction in the price of diesel, which falls from E31.60 to E29.20 per litre for 50ppm.
The price of paraffin has also reduced by E2.90 per litre from E26.28 to E23.18 per litre. The Ministry cited the improvement in the price of diesel and paraffin to a reduction in the international price of crude which has fallen from $110 per barrel in April to $104 per barrel in May and a decrease in freight rates. The uptick in the petrol price, the ministry says it consistent with the end of winter in Europe with higher petrol demand for travelling.
An important driver of the fuel price internationally however is growing optimism at a possible end of the Middle East conflict with indicators of a growing appetite by the USA to cease attacks on Iran. Iran has reacted asymmetrically by bombing petroleum refining infrastructure in Arab countries that host USA military bases. It also closed the Straight of Homuz, blocking the export of crude from the region, significantly disrupting global supply chains.
The progressive improvement in the strength of the rand to which the Lilangeni is pegged, is a positive indicator that the fuel price may be on its way down, perhaps as early as July.
Prior to the Middle East conflict in February, South Africa’s rand benefited from the country’s improved financial health, an upgraded credit rating, and various economic reforms.
In the new year the rand was strong at R16.55 to the dollar and continued to strengthen, even briefly dipping to reach R15.72/USD at the end of January 2026 at the end of February when the US and Israel attacked Iran, which shocked the currency back above R16 to the US$.
Since April however, the rand consistently staying below R17/USD throughout April and May, strengthening to as much as R15.19$ on 29 May. While it has since weakened, it is still positively stronger than it has been for some time.
