DMPR Says Diesel Price Was Overstated Due to Fuel Levy Capture Error

The revised diesel prices officially took effect on Wednesday following the publication of an Erratum correcting the fuel adjustment figures originally released on Monday.

South Africa's Department of Mineral and Petroleum Resources (DMPR) has issued an urgent correction to its May 2026 diesel price adjustment after discovering a calculation error linked to the implementation of a fuel levy reduction, highlighting both the complexity and sensitivity of the country's fuel pricing system amid mounting economic pressure on consumers and industry.

The revised diesel prices officially took effect on Wednesday following the publication of an Erratum correcting the fuel adjustment figures originally released on Monday.

According to the department, an error occurred during the calculation process when the additional 93 cents per litre reduction in the diesel fuel levy was incorrectly entered as 0.93 cents per litre — a seemingly small decimal mistake that significantly affected the final diesel price increase.

"During the calculation of fuel prices for May 2026, the additional 93.00 cents per litre reduction in the fuel levy on diesel was erroneously captured as 0.93 cents per litre.

"This resulted in a higher increase in the wholesale price of R6.19 per litre instead of R5.27 per litre for diesel," the DMPR explained.

Diesel Price Corrected Downward After Error

Following the correction, the wholesale diesel price increase for both grades of diesel has now been revised downward to R5.27 per litre, offering limited but important relief to transport operators, logistics companies, farmers, mining operations and motorists already grappling with rising operating costs.

The corrected May 2026 fuel price adjustments are now as follows:

• Petrol 93 and 95 (ULP & LRP): increase of R3.27 per litre

• Diesel (0.05% sulphur): increase of R5.27 per litre

• Diesel (0.005% sulphur): increase of R5.27 per litre

• Illuminating Paraffin (wholesale): increase of R4.22 per litre

• Single Maximum National Retail Price for Illuminating Paraffin: increase of R5.63 per litre

• Maximum Retail Price of LPGas:

  • Gauteng: increase of R5.07 per kilogram

  • Western Cape: increase of R5.78 per kilogram

The department acknowledged the seriousness of the error and issued an apology to the public and industry stakeholders ahead of the implementation of the revised prices.

"The error is highly regrettable, and the department apologises for any inconvenience caused ahead of the fuel price adjustment.

"The department remains committed to providing timely, accurate and transparent information to the public and all stakeholders," the DMPR said.

Fuel Pricing Under Intense Public Scrutiny

The correction comes at a time when fuel prices remain under intense scrutiny in South Africa, where sharp increases in petrol and diesel costs continue to place pressure on inflation, food prices, public transport costs and broader economic activity.

Diesel prices are particularly significant because the fuel powers large segments of the economy, including freight logistics, agriculture, construction, manufacturing and mining.

Economists warn that diesel increases often have a cascading effect throughout supply chains, eventually impacting consumer goods prices and the overall cost of living.

The revised R5.27 per litre increase, although lower than the originally published R6.19, still represents one of the steepest diesel hikes in recent years.

Fuel Levy Reduction Intended to Cushion Consumers

The department's explanation also sheds light on the government's ongoing use of fuel levy adjustments as a mechanism to cushion consumers from global oil market volatility.

The additional 93 cents per litre levy reduction on diesel formed part of broader interventions aimed at moderating the impact of rising international fuel prices and exchange rate pressures.

South Africa's fuel pricing model is influenced by several factors, including:

• International crude oil prices

• The rand-dollar exchange rate

• Shipping and logistics costs

• Wholesale and retail margins

• Government taxes and levies

• Storage and distribution costs

Even minor calculation discrepancies within this highly technical pricing formula can result in major price shifts at fuel pumps nationwide.

Industry Watches for Stability Amid Volatile Markets

The fuel price correction also comes amid continued volatility in global energy markets driven by geopolitical tensions, supply chain disruptions and fluctuating crude oil production levels internationally.

Analysts say sustained increases in diesel and petrol prices could place additional strain on South Africa's already fragile economic recovery, especially in sectors heavily dependent on transport and energy.

The logistics industry, public transport operators and agricultural producers are expected to closely monitor future fuel pricing announcements as operational costs continue climbing.

Meanwhile, the DMPR said it remains committed to strengthening accuracy and transparency in the fuel pricing process to maintain public confidence in one of the country's most closely watched economic indicators.