By Lehlohonolo Lehana.
The Department of Petroleum and Mineral Resources has announced that the petrol and diesel prices will drop by 5c and 37c, respectively, while paraffin will decrease by 56c.
Prices come into effect from midnight.
Based on current local and international factors, the fuel prices for June 2025 will be adjusted as follows:
- Petrol 93 (ULP & LRP): Five cents per litre (5.00 c/l) decrease.
- Petrol 95 (ULP & LRP): Five cents per litre (5.00 c/l) decrease.
- Diesel (0.05% sulphur): Thirty-six point nine cents per litre (36.90 c/l) decrease.
- Diesel (0.005% sulphur): Thirty-six point nine cents per litre (36.90 c/l) decrease.
- Illuminating Paraffin (wholesale): Fifty-six cents per litre (56.00 c/l) decrease.
- SMNRP for IP: Seventy-five cents per litre (75.00 c/l) decrease.
- Maximum LPGas Retail Price: Eighty-nine cents per kilogram (89.00 c/kg) decrease.
May saw volatility in the oil price and the strengthening of the rand against the dollar relative to April.
This resulted in a conststent over-recovery in fuel prices throughout the month. However, a hike in the general fuel levy from the latest budget undercut this by around 15 cents per litre.
This has translated to a small cut to fuel prices in June—undone only slightly by a hike in taxes.
Local fuel prices are largely driven by international product prices, which are determined by global oil prices and the rand/dollar exchange.
The average international product prices for petrol increased, whilst that of diesel and illuminating paraffin decreased during the period under review.
The rand appreciated against the US dollar during the period under review, on average, when compared to the previous period.
The average Rand/US Dollar exchange rate for the period 2 May 2025 to 29 May 2025 was 18.1146 compared to 18.8382 during the previous period.
This led to a lower contribution to the Basic Fuel Prices on petrol, diesel and illuminating paraffin by 39.34 c/l, 39.80 c/l, 39.49 c/l, respectively.
The Minister of Finance, Enoch Godongwana in his Budget Speech on 21 May 2025, announced that the fuel levy will increase by 16.0 c/l on petrol and 15.0 c/l on diesel.
With effect from 4 June 2025, the Fuel Levy in the price structure of petrol and diesel will increase to 415.0 c/l and 402.0 c/l respectively and the Road Accident Fund Levy will remain at 218.0 c/l in the price structure of both petrol and diesel.