As South Africans brace for another month of economic strain, the Department of Mineral Resources and Energy (DMRE) has confirmed a fresh increase in fuel prices set to take effect from Wednesday, 5 June 2025. This rise follows a trend of fluctuating petrol costs observed throughout the first half of the year, influenced by both global and domestic pressures.
How Much More Will You Pay?
The adjustments to fuel prices vary slightly depending on the grade of petrol and the region, but the overall upward trajectory remains consistent nationwide. Here’s a breakdown of the new pricing effective from early June:
| Fuel Type | Coastal Price (per litre) | Inland Price (per litre) |
|---|---|---|
| Petrol 93 Octane | R24.22 | R24.88 |
| Petrol 95 Octane | R24.54 | R25.20 |
| Diesel (50ppm) | R22.90 | R23.50 |
| Diesel (500ppm) | R22.65 | R23.25 |
Compared to May 2025, petrol prices have increased by an average of 48 cents per litre, while diesel has climbed by up to 30 cents. This change, though expected by many, places additional pressure on consumers already contending with inflation and rising food prices.
Why Are Petrol Prices Increasing Again?
Several factors contribute to the price hike:
- Brent Crude Oil Prices: International oil markets have seen Brent crude climbing above $90 per barrel by late April 2025, driven by geopolitical tensions in the Middle East and constrained supply from OPEC+ nations.
- Rand-Dollar Exchange Rate: The rand has weakened against the US dollar, hovering around R18.85 per dollar. Since crude oil is traded globally in dollars, a weaker rand makes imports more expensive.
- Local Fuel Taxes and Levies: Government-imposed levies such as the General Fuel Levy and the Road Accident Fund levy remain significant contributors to the retail pump price.
- Seasonal Demand: The shift into the Northern Hemisphere’s summer months typically increases global fuel demand, adding upward pressure on pricing.
Impact on Households and Businesses
The petrol price hike is set to ripple through the economy in several ways:
- Transport Costs: Taxi associations have hinted at fare increases. For commuters relying on public transport, this could mean paying more from mid-June.
- Food and Goods: Logistics companies are already signaling potential freight rate adjustments, which could lead to higher shelf prices in supermarkets.
- Small Businesses: Enterprises with logistics or delivery components may need to adjust their pricing or absorb additional costs, tightening already thin margins.
Government Response and Long-Term Outlook
Government intervention remains limited in the short term. The Department of Energy is conducting a review of the fuel pricing structure, but reforms are unlikely to provide immediate relief. For the rest of 2025, analysts predict fuel prices may stabilize only if global oil production increases or the rand strengthens notably.
Industry analysts also recommend that consumers monitor monthly fuel adjustments and consider more fuel-efficient practices or vehicles where possible.
Conclusion
With the petrol price increase set for June 2025, South African drivers must prepare for higher transportation costs across the board. While this change is influenced largely by global trends, the domestic impact is immediate and far-reaching. From logistics to food pricing, the cost ripple effect is real, and proactive budgeting may become even more crucial for households and businesses alike.
FAQ
Why are petrol prices different at the coast and inland?
Petrol prices differ due to transport and distribution costs. Inland areas require additional logistics, which increases the final retail price.
Will prices drop later in 2025?
It depends on several factors, including global oil output, the rand-dollar exchange rate, and government policies. Stability may return if international tensions ease and production increases.
What portion of the petrol price is tax?
Roughly 40% of the pump price consists of taxes and levies, including the General Fuel Levy and the Road Accident Fund levy.
How can I reduce my fuel expenses?
Opt for carpooling, maintain your vehicle regularly, avoid heavy acceleration, and consider more fuel-efficient vehicles or routes.
Do diesel prices always rise along with petrol?
Not always. Diesel and petrol prices are influenced by different global supply and demand dynamics, but they often move in similar directions.
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