As South African consumers face another challenging month, June brings significant fuel price hikes alongside an interest rate increase from the South African Reserve Bank. While petrol prices rise, diesel users will see price cuts. Trade unions are urging the government to provide further relief to mitigate the impact on workers and the economy.
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As we mark the half way point of the year, June brings yet another speed bump for South African consumers, after fuel price increases kick in on Wednesday, compounded by the interest rate hike announced by the South African Reserve Bank (Sarb) that also came into effect this month.
Petrol prices will rise significantly while diesel users will benefit from substantial price cuts.
Motorists filling up with petrol will see prices increase by R1.43 per litre, Diesel users, however, will benefit from significant decreases, with diesel containing 0.05% sulphur falling by R3.25 per litre and diesel containing 0.005% sulphur decreasing by R2.62 per litre.
The Congress of South African Trade Unions (Cosatu) has urged government to provide further Fuel Levy relief to cushion embattled workers and the economy from the massive fuel price hikes that have wrecked havoc since the commencement of the war in the Persian Gulf.
Cosatu said, following the official fuel price adjustment announced on Monday, "Whilst we appreciate the modest initial decrease in diesel prices due to come into effect, a further rise in petrol prices will be yet another painful blow that millions of struggling workers and commuters, and an already stagnant economy stuck at anemic 1% growth, simply cannot afford."
The trade union added that it fears workers, society, and the economy will not cope with the planned end in the fuel levy relief in July if international oil and fuel prices continue to remain abnormally high and even rise.
"Oil and fuel supplies and prices may also take some time to return to pre-war levels even once the war ends," Cosatu added.
Diesel is critical for the public and private transport that workers depend upon as is paraffin for millions of working-class families.
"Workers who are already drowning in debt, supporting up to seven relatives each and spending an average of 40% of their meagre wages on transport; will not be able to continue to survive such steep petrol, diesel, gas and paraffin price prices. The most important source of relief for workers, society and the economy, is to maintain the fuel levy relief while oil and fuel prices remain high. This is the most impactful and cost-effective solution to this global crisis. Additional relief should be sought by making public transport more affordable to commuters," Cosatu stated.
The union further said that it is critical that the Reserve Bank spare society further pain by not increasing the repurchase rate (repo rate) as this source of inflation is external and not domestic driven.
"Workers’ meagre wages must be protected from further bleeding. The private sector must end its investment strike and contribute towards an economic and social relief package to kickstart a stagnant economy and give hope to an under-siege working class. Government with the support of public and private financial institutions must put in place a bold stimulus package to kickstart an under-siege economy," Cosatu said.
The union added that it will continue to engage government on a package of bold, progressive and decisive measures to cushion workers, the poor and the economy from this global crisis.
Abigail Moyo, spokesperson of the trade union UASA said that the fuel price adjustments brought mixed feelings for consumers, as some will feel the pinch while others experience slight relief from the events of the past two months.
"From Wednesday, petrol prices will rise, while diesel, LP Gas, and paraffin will see official price reductions. Although there was an over-recovery across all fuel categories, the National Treasury is also restoring part of the R3.00 per litre and R3.93 per litre cuts from the fuel levy made in June," Moyo said.
With R1.50 per litre being added back to petrol prices instead of a reduction, petrol prices at the pump will increase.
"Meanwhile, R1.96 is being added back to the diesel price which, unfortunately, still results in a decrease at the pumps. Over the past four months, petrol prices have risen by R8 per litre. Although the fuel price outlook is disappointing for petrol drivers, we welcome the good news regarding diesel prices, as we hope this marks the beginning of a return to normal circumstances," Moyo added.
She said that industries and companies that depend on diesel for their operations, such as logistics and farming, will directly benefit from a reduction in fuel prices.
"We are also pleased that consumers reliant on paraffin for household use and heating will benefit from the price adjustments. We hope fuel prices will continue to improve, and we strongly encourage petrol users to remain cautious and spend wisely until the situation stabilises," Moyo said.
The fuel prices for June 2026 will be adjusted as follows:
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