Fuel Relief as Petrol, Diesel Prices Drop Slightly in June

South African motorists can expect some relief at the pumps this month. The Department of Petroleum and Mineral Resources has officially announced revised fuel prices, set to take effect from Wednesday, 4 June 2025.

Although May was marked by oil price fluctuations and a stronger rand, the impact has resulted in minor fuel price cuts for June. However, these gains have been somewhat offset by new tax hikes introduced in the recent national budget.

Modest Decreases for Petrol and Diesel

According to the latest pricing adjustments, both 93 and 95 unleaded petrol will be reduced by 5 cents per litre. Diesel users will see a more notable drop, with both 0.05% and 0.005% diesel decreasing by 37 cents per litre.

Illuminating paraffin is down 56 cents, while LPGAS has the sharpest drop—89 cents per kilogram. These reductions are welcomed amid rising living costs, offering temporary financial breathing room for consumers and businesses alike.

Rand Strength Supports Price Cuts

The petrol price cut can be largely credited to the appreciation of the rand against the US dollar. The average exchange rate improved from R18.83 to R18.11, helping reduce basic fuel prices across the board.

Despite an increase in average international petrol product prices, the drop in diesel and paraffin prices, combined with currency gains, helped balance out the overall cost structure.

In figures, the average reduction in contribution to the Basic Fuel Price amounted to 39.34 cents for petrol, 39.80 cents for diesel, and 39.49 cents for illuminating paraffin.

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Fuel Levy and Transport Tariffs Rise

While fuel product costs dipped, government taxes slightly undercut the benefits. In the 21 May 2025 Budget Speech, the Minister of Finance confirmed an increase in the general fuel levy—up by 16 cents for petrol and 15 cents for diesel.

These increases bring the fuel levy up to R4.15 per litre for petrol and R4.02 for diesel, while the Road Accident Fund levy holds steady at R2.18 per litre.

Adding to this, four Magisterial District Zones (MDZs)—9C, 10C, 11A, and 11C—will see adjusted transport tariffs between 0.1 and 2.6 cents per litre, based on updated pipeline tariffs approved by the Minister of Minerals and Petroleum Resources.

Updated Fuel Prices: Inland vs Coastal

Here’s how the new prices will appear at the pumps from 4 June 2025:

Inland Prices:

  • 93 Petrol: R21.24 (down from R21.29)
  • 95 Petrol: R21.35 (down from R21.40)
  • Diesel 0.05%: R18.53 (down from R18.90)
  • Diesel 0.005%: R18.57 (down from R18.94)
  • Illuminating Paraffin: R12.49 (down from R13.05)
  • LPGAS: R37.34/kg (down from R38.23/kg)

Coastal Prices:

  • 93 Petrol: R20.45 (down from R20.50)
  • 95 Petrol: R20.52 (down from R20.57)
  • Diesel 0.05%: R17.70 (down from R18.07)
  • Diesel 0.005%: R17.81 (down from R18.18)
  • Illuminating Paraffin: R11.47 (down from R12.03)
  • LPGAS: R34.18/kg (down from R35.07/kg)

Despite tax increases and district-specific transport adjustments, the stronger rand and international market shifts have helped ease pressure on fuel prices for now. Motorists are advised to fill up while these modest savings last.

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