Fuel price increase places renewed pressure on consumers

The National Automobile Dealers’ Association (NADA) notes the fuel price increases effective at midnight tonight (3 March 2026), including a 20 cents per litre rise in petrol and increases of up to 65 cents per litre in diesel.

Higher fuel prices affect more than the cost of filling up at the pump. As transport and logistics costs rise, these increases filter through the value chain, contributing to higher prices across the basket of goods and services purchased by households. This places additional strain on already constrained consumer budgets.

As highlighted in NADA’s recent new vehicle sales commentary, while the market has shown encouraging signs of resilience, affordability remains a key constraint for many consumers. Sustained fuel increases place greater scrutiny on the total cost of vehicle ownership and are also likely to reinforce a cautious approach to inflation management by the South African Reserve Bank, which in turn affects purchasing behaviour.

For the automotive retail sector, rising fuel and levy costs add further pressure to overall vehicle ownership expenses at a time when household finances remain tight. Continued volatility in global oil markets, in response to rapidly escalating developments in the Middle East, also introduces uncertainty for both consumers and businesses.

NADA will continue to closely monitor developments as the industry navigates a challenging but resilient market environment.

NADA is a proud association of the Retail Motor Industry Organisation (RMI).