NADA Comment: Fuel price increases add to pressure on consumers
The National Automobile Dealers’ Association (NADA) notes with concern the substantial fuel price increases taking effect from 2 September 2026, including a R1.34 per litre increase in petrol and increases of up to R3.15 per litre in diesel. These are the highest fuel prices seen since June 2026.
“These increases will place further pressure on household budgets and raise operating and distribution costs across the economy. For motorists, fuel efficiency and the total cost of vehicle ownership will become even more important considerations when purchasing a vehicle,” says Brandon Cohen, Chairperson of NADA.
The sharp increase in diesel prices will affect the cost of transporting almost every category of goods, from food to other essential items. It may also add to inflationary pressure, potentially presenting the South African Reserve Bank with difficult decisions on whether to hold or increase interest rates at its next Monetary Policy Committee meeting.
“This will place even more strain on South Africans who are already under severe financial pressure. At the same time, high fuel prices are likely to sustain interest in new-energy vehicles, including hybrids, plug-in hybrid electric vehicles and battery-electric vehicles,” Cohen says.
“South Africa’s transition will involve a range of technologies, and franchised dealers are well positioned to help consumers identify the option best suited to their budgets, driving patterns and access to charging infrastructure,” Cohen concludes.
NADA is a proud association of the Retail Motor Industry Organisation (RMI).
