Fuel Price Reduction Brings Financial Relief to Consumers from April 2025

The new price adjustments reflect a welcome reduction in the cost of fuel, with some categories seeing cuts of up to R1.14 per litre.

Motorists across South Africa are set to enjoy some much-needed financial relief as fuel prices are set to drop significantly from Wednesday, April 2, 2025. The announcement, made by the Department of Mineral and Petroleum Resources on Tuesday, outlines the specific price adjustments for petrol, diesel, paraffin, and liquefied petroleum gas (LPGas).

Fuel Price Decreases Across the Board

The new price adjustments reflect a welcome reduction in the cost of fuel, with some categories seeing cuts of up to R1.14 per litre. Below is a summary of the changes that will come into effect:

• Petrol 93 (ULP & LRP): 58-cent decrease

• Petrol 95 (ULP & LRP): 72-cent decrease

• Diesel 0.05% Sulphur: 83-cent decrease

• Diesel 0.005% Sulphur: 85-cent decrease

• Illuminating Paraffin (Wholesale): 81-cent decrease

• Single Maximum National Retail Price for Illuminating Paraffin: R1.14 decrease

• Maximum LPGas Retail Price: 79-cent decrease

With these adjustments, consumers in Gauteng, where fuel prices have been particularly high, will see a reduction in the price of petrol 95 from R22.34 per litre to R21.62 per litre. Along the coast, where the price has been slightly lower, the cost of 95 petrol will decrease from R21.55 to R20.79 per litre.

Factors Contributing to the Decrease

The department attributes the fuel price reductions to a combination of factors. Key among these is the drop in the average Brent Crude oil price, which fell from 74.89 USD to 71.04 USD per barrel during the period under review. The decrease in global oil prices can be credited to continued supply from non-OPEC countries, coupled with a moderate increase in supply from OPEC+ producers expected in April 2025.

Furthermore, international petroleum product prices followed the downward trend in crude oil prices. This shift led to a significant reduction in the Basic Fuel Prices of petrol, diesel, and illuminating paraffin by 66.36 cents per litre (c/l), 80.10 c/l, and 72.07 c/l, respectively.

Strengthening Rand Plays a Role in the Price Decrease

In addition to global oil prices, the strength of the South African Rand against the US Dollar (USD) played a crucial role in lowering the cost of fuel. The Rand appreciated from R18.50 to R18.30 per USD during the period under review. This strengthened currency led to further reductions in the Basic Fuel Prices for petrol, diesel, and illuminating paraffin by 11.72 c/l, 12.42 c/l, and 12.24 c/l, respectively.

Economic Relief for South African Consumers

This price reduction comes as a relief to many South African consumers who have been grappling with high fuel prices in recent months. With the cost of living steadily rising and inflation affecting numerous sectors, lower fuel prices provide a much-needed buffer for households. The decrease in fuel costs will also positively affect transportation expenses, which will, in turn, have a ripple effect on goods and services prices across the country.

The Way Forward for Fuel Prices

While the decrease in fuel prices is welcome news, analysts continue to monitor global oil price trends, as well as the strength of the Rand. The ongoing geopolitical situation, as well as global economic recovery post-pandemic, are likely to continue to influence fuel price adjustments in the future. For now, consumers are set to enjoy the benefits of the April price reductions, but they remain cautious about potential volatility in the energy market.

With the price of fuel now more manageable, the South African government is hopeful that this adjustment will provide relief to motorists, boost the national economy, and help stabilize the cost of living during this difficult period.