Motorists and businesses will pay more for diesel from Friday after the Ministry of Natural Resources and Energy announced an increase of E1.30 per litre, citing higher international crude oil prices, global supply disruptions and a weaker Lilangeni against the United States dollar.
The new prices take effect at midnight on Thursday, August 6, 2026, becoming effective Friday, August 7, 2026.
While diesel users will feel the impact of the adjustment, motorists using petrol and households relying on illuminating paraffin have been spared further increases, with both prices remaining unchanged.
Under the new pricing structure, Diesel (50ppm) will increase from E26.20 per litre to E27.50 per litre. The price of Unleaded Petrol (ULP95) remains at E24.67 per litre , while illuminating paraffin stays at E20.38 per litre.
In a statement issued by Principal Secretary Lindiwe F. Mbingo, the ministry attributed the diesel price increase to developments in the international energy market during July.
According to the ministry, international crude oil prices averaged US$87 per barrel in July 2026, up from US$85 per barrel recorded in June. The increase was driven by growing geopolitical tensions and supply constraints that tightened the global fuel market.
The ministry highlighted shipping risks in the Strait of Hormuz and the Red Sea as major factors disrupting international oil transportation. These challenges were compounded by Russia’s diesel export ban, introduced after Ukrainian drone strikes, which significantly reduced global diesel supplies and placed additional upward pressure on prices.
Apart from international market conditions, the ministry also noted that the local currency weakened slightly against the US dollar during the review period. The Lilangeni/Dollar exchange rate averaged E16.46 in July compared to E16.37 in June, making imported fuel more expensive.
Diesel is widely used across key sectors of the economy, including public transport, freight, mining, agriculture and construction. As a result, the latest increase is expected to raise operating costs for many businesses, with some analysts warning that higher transport and production expenses could eventually filter through to consumer prices if global market conditions persist.
However, the decision to keep petrol and paraffin prices unchanged provides some relief to private motorists and households, particularly those that depend on paraffin for cooking and heating.
The ministry urged consumers to use fuel efficiently as international oil markets remain volatile.
“The Ministry encourages the public to use fuel efficiently as the international oil markets and the Lilangeni/Dollar exchange rate remain volatile,” the statement reads.
