South African motorists can look forward to slightly lower fuel prices in June. The Department of Mineral Resources and Energy has in view several official adjustments that are to take effect on Wednesday, June 4, 2025.
Price adjustments to fuels
Price adjustments will see a decrease in petrol grades 93 and 95 unleaded by 5 cents per litre. Diesel prices, however, will see more price cuts, with both 0.05% and 0.005% sulphur-containing varieties decreasing by 37 cents per litre. Illuminating paraffin will be going down by 56 cents per litre and liquefied petroleum gas (LPG) by 89 cents per kilogram.
Factors influencing the price changes
Fuel price change is occasioned by various factors. The rand strengthened against the US dollar, averaging R18.11/\$ during the review period compared with R18.84/$ previously. This level of appreciation meant a downward adjustment in the contribution to the Basic Fuel Prices for petrol, diesel, and illuminating paraffin of the order of 39 cents per litre .
Internationally, the average price of Brent crude oil moved down from $66.40 per barrel to $63.95 during the review period. Declining international crude prices thus eased the pressure on the domestic prices of fuels.
Impact of fuel levy increase
The potential benefits presented by the favorable exchange and oil prices were somehow negated by the recent increases to the general fuel levy. The Minister of Finance, Enoch Godongwana went on record stating that the petrol fuel levy would increase by 16 cents and that for diesel would increase by 15 cents during the Budget of 2025. This levy increase has, in turn, dampened the net fuel price decline by some 15 to 16 cents per litre .
Price variation in the regions
Fuel prices will incur variation between the inland and coastal regions. For example, in Gauteng, which is inland, the price for 93 unleaded petrol will be R21.24 per litre and will be R20.45 per litre on the coast. With diesel prices, inland is expected to top at R18.53 per litre for 0.05% southern diesel and R17.70 per litre on the coast .
In conclusion
Since June 2025, the fuel price adjustments will be offering limited relief to South African motorists, whereas the increased fuel levy now reduces the overall benefit. Nevertheless, some relief has come through reductions on account of an improved rand and lesser international oil prices.