The slate levy applicable to every litre of petrol or diesel sold in South Africa was increased to R1.58 in June, potentially adding hundreds of rands to motorists’ monthly fuel spend.
The self-adjusting mechanism was formally implemented in 2009 to compensate the fuel industry for incremental under-recoveries incurred during the importation and supply of petroleum products.
Alongside the June fuel price adjustments, Mineral and Petroleum Resources Minister Gwede Mantashe announced that the levy would increase by 35.04 cents per litre, rising from 122.70c/l to 157.74 c/l across all fuel types.
“The cumulative slate amounted to a negative balance of R18.28 billion for petrol and diesel at the end of April 2026,” the minister noted.
The Fuels Industry Association of South Africa (FIASA) weighed in, explaining that the slate levy is crucial for the sector.
“The levy remains an important mechanism within the fuel pricing structure, ensuring stability in the recovery of fuel importation and supply costs over time,” it said.
The slate levy is by no means the only additional cost applied to fuel prices, and South Africans spend nearly R6.50 per litre funding various taxes and levies.
These include wholesale and dealer margins, storage, handling and delivery costs, the general fuel levy (GFL), customs and excise duty, the Road Accident Fund (RAF) levy, and rounding costs.
Distribution costs and zone differential margins for fuel sold in inland provinces like Gauteng add an additional 90 cents per litre.
As a result, petrol and diesel prices in South Africa should be closer to R20 per litre this month, instead of the R28 per litre and nearly R30 per litre paid inland in June.
What the slate levy is adding to your monthly fuel spend
While most South Africans refuel as they need instead of filling their tanks every time, it is good to know what it would cost to fill your car’s tank.
Below is a breakdown of what it would cost to refuel a petrol car in one of South Africa’s inland provinces at the current price of R28.06, and what it would cost to refuel if the slate levy did not apply.
| Fuel tank size | Petrol price (R28.06 p/l) | Petrol without slate (R26.48 p/l) | Difference |
|---|---|---|---|
| 30 litres | R841.80 | R794.40 | R47.40 |
| 35 litres | R982.10 | R926.80 | R55.30 |
| 40 litres | R1,122.40 | R1,059.20 | R63.20 |
| 45 litres | R1,262.70 | R1,191.60 | R71.10 |
| 50 litres | R1,403 | R1,324 | R79 |
| 55 litres | R1,543.30 | R1,456.40 | R86.90 |
| 60 litres | R1,683.60 | R1,588.80 | R94.80 |
| 65 litres | R1,823.90 | R1,721.20 | R102.70 |
| 70 litres | R1,964.20 | R1,853.60 | R110.60 |
| 75 litres | R2,104.50 | R1,986 | R118.50 |
| 80 litres | R2,244.80 | R2,118.40 | R126.40 |
A different way of looking at the difference the slate levy makes in monthly fuel spend is to consider your average monthly driving distance.
Most South African motorists drive between 1,000km and 2,000km monthly, with others driving either far less or much more.
Considering a range of different driving scenarios, it’s fair to assume most motorists could maintain an average fuel consumption of around 7.0l/100km.
Below is a look at the difference motorists travelling various distances are paying purely due to the introduction of a higher slate levy.
| Driving distance | Current petrol cost (R28.06 pl @ 7.0l/100km) | Petrol cost without slate levy (R26.48 p/l @ 7.0l/100km) | Difference |
|---|---|---|---|
| 500km | R982.10 | R926.80 | R55.30 |
| 1,000km | R1,964.20 | R1,853.60 | R110.60 |
| 1,500km | R2,946.30 | R2,780.40 | R165.90 |
| 2,000km | R3,928.40 | R3,707.20 | R221.20 |
| 2,500km | R4,910.50 | R4,634 | R276.50 |
| 3,000km | R5,892.60 | R5,560.80 | R331.80 |
A look at both tables shows that someone who needs to fill a vehicle with an 80-litre petrol tank will pay up to R126.40 per month, granted they only fill up once.
Additionally, someone driving as much as 3,000km per month can add R331.80 to their monthly fuel bill.
The average motorist can more likely expect to spend an additional R165.90 or R221.20 per month, thanks to the R1.58 slate levy.
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