The Department overseeing energy and mineral resources has announced changes to local fuel prices, set to take effect on Wednesday, 7 May 2025.
During April, international oil prices dropped significantly, influenced by global market instability triggered by trade tensions and tariffs introduced by the US. Meanwhile, the rand experienced moderate depreciation in response to these external shocks.
Despite the weaker currency, the sharp decline in oil prices has led to a net decrease in domestic fuel costs for May—although the relief is slightly offset by adjustments in fuel-related taxes.
Fuel Price Reductions:
- Petrol (93 and 95 octane): down 22 cents per litre
- Diesel 0.05% (wholesale): down 42 cents per litre
- Diesel 0.005% (wholesale): down 41 cents per litre
- Illuminating paraffin: down 31 cents per litre
- LPGAS: up by 46 cents per kilogram
These adjustments are largely influenced by fluctuations in international oil prices and the exchange rate between the rand and the US dollar.
Over the past month, Brent crude declined by approximately $5 to around $66.50 per barrel, as concerns over a potential global slowdown impacted demand projections.
This, combined with a surprise increase in output by oil-producing nations, contributed to the price drop.
The rand experienced significant volatility throughout April, reflecting investor uncertainty in a global environment increasingly influenced by Donald Trump’s policies. The local unit initially came under pressure amid growing concerns over a potential US recession, which dampened appetite for riskier emerging market assets.
However, it regained some ground by the end of last week, buoyed by renewed optimism over a possible thaw in US-China trade relations and stronger-than-expected US employment figures, which helped lift global market sentiment.
These gains came in spite of discouraging domestic data, with the latest Purchasing Managers’ Index (PMI) revealing continued weakness in South Africa’s manufacturing sector.
Tax and Levy Updates: According to the national budget delivered in March, key levies such as the Fuel Levy and Road Accident Fund (RAF) Levy remain unchanged:
- Fuel Levy: 396.00 c/l (petrol), 384.00 c/l (diesel)
- RAF Levy: 218.00 c/l (both petrol and diesel)
However, the carbon tax on fuel rose by 3.00 c/l, bringing it to 14 c/l for petrol and 17 c/l for diesel as of 2 April 2025.
This results in total fuel levies of 399.00 c/l for petrol and 387.00 c/l for diesel. The slate levy remains at 0 c/l.
Revised Fuel Prices – Inland Region:
| Fuel Type | April 2025 Price | May 2025 Price |
|---|---|---|
| Petrol 93 | R21.51 | R21.29 |
| Petrol 95 | R21.62 | R21.40 |
| Diesel 0.05% (Wholesale) | R19.32 | R18.90 |
| Diesel 0.005% (Wholesale) | R19.35 | R18.94 |
| Illuminating Paraffin | R13.36 | R13.05 |
| LPGAS (per kg) | R37.77 | R38.23 |
