South Africans can expect a significant decrease in petrol prices from 2 April 2025. 93 unleaded petrol dropped by 58 cents from the old price of R22.09, setting the new price to R21.51 per liter. Meanwhile, 95 unleaded petrol dropped by 72 cents from the old price of R22.34, setting the new price to R21.62 per liter. A thorough report on the fuel price changes was provided by The South African. The main reasons for the fuel price adjustments are due to various reasons.
Reasons for petrol price decrease
The department of mineral and petroleum resources announced that South Africa’s fuel prices are adjusted monthly based on international and local factors. This includes importation costs such as shipping, as the country imports crude oil and finished products at international levels.
From 6 March 2024 until 5 March 2025, the ministers of finance and mineral and petroleum approved a temporary increase in the illuminating paraffin tracer dye levy for diesel to one cent. As of 5 March 2025, the levy was decreased to half a cent.
In addition to this, the rand had a lower average appreciation against the US Dollar. This caused a decreasefrom 19.20 to 18.04 Rand per USD during the review period. This resulted in lower contributions to all product Basic Fuel Prices by over 10 cents per liter.
Moreover, in his budget speech on the 21st of February 2024, the minister of finance announced that the fuel levy and road accident fund levy on petrol and diesel will remain unchanged from 3 April 2024. However, the carbon fuel levy increased by 1.00c/l on both petrol and diesel. This brings the fuel levy on petrol and diesel to 396.00 c/l and 384.00 c/l, respectively.
The Impact on Consumers
The fluctuating fuel prices often create major effects on our lives. A decrease in fuel prices could provide some relief to South African households and businesses, especially with the reported rising electricity costs. Particularly for goods and services dependent on road transportation, some costs may be alleviated due to the effective measures in curbing inflation.
This financial relief provides some breathing room as living costs continue to rise. As reported by Trading Economics, South Africa’s inflation rate reached its highest in four months at 3.2% in February 2025. Evidently, inflation remains a challenge.
The constant change in fuel prices serves as a reminder of the ongoing challenges of balancing international and local factors. Ordinary citizens ought to be proactive and aware of fuel price trends. This is to ensure that they can plan their expenses accordingly.
As a consumer, what are thoughts about the fuel price decrease?
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1.
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