The Department of Mineral Resources and Energy has confirmed a modest fuel price decrease effective Wednesday, 4 June 2025, bringing some relief to South African motorists. However, this comes hand-in-hand with the implementation of the General Fuel Levy increase, which has raised concerns among fuel retailers and consumers alike.
Commenting on the developments, Lebo Ramolahloane, National Vice Chairperson of the South African Petroleum Retailers Association (SAPRA), a proud association of the Retail Motor Industry Organisation (RMI) said that while the price drop is welcome, the benefits are significantly muted by the simultaneous tax hikes.
“Consumers and businesses were hoping for a more meaningful reprieve, especially after a third consecutive month of fuel price cuts. Unfortunately, the new increases in fuel levies – 16 cents per litre for petrol and 15 cents for diesel – are eroding much of that anticipated relief,” said Ramolahloane.
Fuel Price Adjustments – Effective 4 June 2025
Petrol – Gauteng & Coastal:
• 93 ULP & LRP: 5.00 c/litre decrease
• 95 ULP & LRP: 5.00 c/litre decrease
Diesel – Gauteng:
• 0.05% Sulphur: 36.90 c/litre decrease
• 0.005% Sulphur: 36.90 c/litre decrease
Diesel – Coastal:
• 0.05% Sulphur: 37.00 c/litre decrease
• 0.005% Sulphur: 37.00 c/litre decrease
Illuminating Paraffin:
• Wholesale: 56.00 c/litre decrease
• SMNRP: 75.00 c/litre decrease
LPG:
• Retail: 89.00 c/kg decrease
Despite the welcome drop in pump prices, SAPRA warns that the revised General Fuel Levy, now R4.15 per litre for petrol and R4.02 for diesel, alongside the Road Accident Fund Levy, still at R2.18 per litre, continues to contribute heavily to the overall fuel price structure.
“Fuel is a key cost driver in virtually every industry. Any increase in fuel-related taxes pushes up the cost of transport, goods, and services. So while the price adjustments in June are technically decreases, the net gain to consumers is marginal,” explained Ramolahloane.
The Department also approved updated pipeline transport tariffs in four magisterial zones (9C, 10C, 11A, and 11C), which will slightly increase local fuel prices in those areas by 0.1c to 2.6c/litre.
Ramolahloane adds, “It’s important to understand that fuel taxes are fixed. They don’t decrease when the oil price drops or the rand strengthens. So, while Brent crude prices and exchange rates play a role, the increasing tax burden continues to raise the floor on what we pay at the pump.”
SAPRA reiterates the need for ongoing dialogue between government, retailers, and stakeholders to ensure that pricing structures remain fair and sustainable, particularly in a fragile economic climate.