Fuel Price Relief: Petrol and Diesel Drop in South Africa from Wednesday
South African motorists are in for a slight reprieve as the Department of Mineral Resources and Energy (DMRE) announced a fuel price decrease effective Wednesday, 4 June 2025. While the drop brings a breath of fresh air to struggling consumers, the savings are offset in part by an increase in the fuel levy — a move that continues to frustrate drivers facing mounting transport costs.
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Petrol and Diesel Prices: What’s Changing?
The DMRE confirmed that both grades of petrol — 93-octane and 95-octane — will drop by 5 cents per litre, while diesel prices will see a more substantial decrease of 36.9 cents per litre for both the 0.05% sulphur and 0.005% sulphur grades.
Here’s a breakdown of the new prices:
- 93 Unleaded Petrol: R21.40 per litre
- 95 Unleaded Petrol: R21.51 per litre
- Diesel (0.05%): R18.68 per litre
- Diesel (0.005%): R18.73 per litre
- Illuminating Paraffin: Drops by 56 cents per litre
- LP Gas: Decreases by 89 cents per kilogram
These adjustments mark the fifth consecutive month of downward trends in fuel prices — a welcome trend after the price peaks seen in early 2025.
Why Are Fuel Prices Dropping?
Several key economic and global factors have contributed to the reduction in fuel prices this month:
1. Lower Brent Crude Oil Prices
The average Brent Crude oil price fell from $66.40 to $63.95 USD over the past month. This dip is largely due to:
- Ongoing global trade uncertainties
- A weaker global demand outlook for crude oil
- The OPEC+ decision to increase oil production in June and possibly July 2025
2. Stronger Rand Against the Dollar
The Rand strengthened from R18.84 to R18.11 per US Dollar, helping to offset the cost of imports like petroleum products. According to DMRE spokesperson Robert Maake, this exchange rate shift resulted in over 39 cents per litre in savings on basic fuel prices across petrol, diesel, and illuminating paraffin.
The Catch: Fuel Levy Increase
Despite the downward price adjustments, not all the news is positive. The Fuel Levy, announced by Finance Minister Enoch Godongwana during his Budget Vote Speech on 21 May 2025, is set to rise:
- Petrol: Up by 16 cents per litre to R4.15
- Diesel: Up by 15 cents per litre to R4.02
This means that while pump prices are slightly down, the increased levy eats into the potential savings.
Additionally, the Road Accident Fund levy remains unchanged at R2.18 per litre, continuing to be a standard fixture in fuel pricing structures.
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No Change in the Slate Levy
Maake also addressed the Slate Levy, which currently stands at zero cents per litre. The cumulative slate balance reached a positive R4.486 billion by the end of April 2025, meaning there’s no need to pass on slate-related costs to consumers for now. The Self-Adjusting Slate Levy Mechanism ensures that adjustments are made only when necessary, and the positive balance bodes well for stable pricing in the near term.
Relief at the Pumps — But Not Without Limits
Although South African motorists can enjoy a minor drop in fuel costs this June, the reality is more complex. The strengthening Rand and falling oil prices have certainly helped, but the increased fuel levy limits the full benefits of the price cuts. As global markets continue to fluctuate and domestic fiscal pressures mount, consumers may need to brace for continued volatility in the months ahead.
For now, though, any drop in fuel prices is a win—— even a modest one—— for commuters, logistics companies, and households battling the high cost of living.