After the announcement of fuel levy’s overdue growth by the Finance Minister of South Africa, initial expectations for the price of much lower fuel were thwarted. Despite this, the marginal decrease in the board for South African motorists for June 2025 is expected to decrease.
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South African motor drivers can expect even a little at the pumps this week, as Department of Petroleum and Mineral Resource On Wednesday, 4 June 2025, the official fuel price adjustment prescribed to be effective has been announced. After one month of instability of relative oil value and after a strong rand, the fuel prices in the board will see a short reduction, although the fuel levy declared in the May National Budget offset somewhat offset. Both unleashed 93 and 95 will see a decrease of 5-percent, while both grade per liter of diesel will experience a 37-per cent cut.
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A close look at the data of the previous month shows that the rand became significantly strong during the review period (2 to 29 May 2025), compared to R18.84/$ last month R18.11/$ average. This praise helped reduce the prices of about 39 cents per liter of original fuel in petrol, diesel and light paraffin. However, the benefits of low international fuel prices were partially launched by Fuel Lavi Hike offered by Finance Minister Hanok Godongwana during his budget speech of 21 May 2025. From June 4, fuel will increase R4.15 per liter for levy petrol and R4.02 per liter for diesel. In addition, the road accident fund levy (which remains unchanged) sits at R2.18 per liter for both fuel types. These tax potential deduction increases about 15–16 cents per liter sliced, resulting in a greater net cut on the pump.
- Inland petrol unledled 93 – R21.24 (below R21.29)
- Inland petrol unledled 95 – R21.35 (below R21.40)
- Coastal Petrol Unleased 93 – R20.45 (below R20.50)
- Coastal Petrol Unleased 95 – R20.56 (below R20.61)
- Inland diesel 500 ppm – R18.53 (below R18.90)
- Inland diesel 50 ppm – R18.57 (below R18.94)
- Coastal Diesel 500 ppm – R17.74 (below R18.07)
- Coastal Diesel 50 ppm – R17.81 (below R18.18)
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While the June deduction provides some relief to South African consumers, the overall picture is one of the cautious optimism. Strong rand and global oil dynamics helped reduce prices, but domestic taxes and transport costs are preventing them from falling forward. DMRE says that the trend of fuel price for the rest of the winter will probably depend a lot on the stability of the international oil market and the flexibility of the rand.