Fuel prices in South Africa are expected to dip slightly this week, offering motorists brief relief despite looming tax increases.
Minor Fuel Price Drop Expected This June
The Department of Mineral Resources and Energy will announce the next fuel price adjustment on Wednesday, June 4, and according to unaudited data from the Central Energy Fund (CEF), both petrol and diesel are likely to see modest price reductions.
However, these savings will be partially offset by new fuel levy hikes set to take effect on the same day.
Petrol and Diesel Forecasts
Petrol was initially projected to drop by approximately 20 cents per litre. But with a 16 cent increase in the General Fuel Levy (GFL) being implemented, the actual reduction is now expected to be a modest 4 cents per litre.
Here are the current inland petrol prices:
- 93 Unleaded Petrol: R21.29/litre
- 95 Unleaded Petrol: R21.40/litre (inland), R20.60/litre (coastal)
As for diesel, the monthly over-recovery initially suggested a 51 cent drop, but with a 15 cent levy added, the anticipated decrease has narrowed to 36 cents per litre.
Strong Rand Cushions Fuel Costs—for Now
A stronger rand has played a key role in keeping fuel prices from climbing, despite slight increases in global oil prices. This currency strength helped generate over-recoveries in both petrol and diesel categories.
However, analysts warn that if oil prices trend upward in the coming months, South African drivers could once again face steep pump prices—especially given the heavy tax load already embedded in fuel prices.
Higher Levies Could Cancel Out Savings
As part of the 2025 fiscal adjustments, the total tax on petrol will climb to R6.37 per litre, which includes the R2.18 Road Accident Fund contribution.
Finance Minister Enoch Godongwana announced the GFL hike along with other spending cuts during his budget speech on May 21, aiming to close the gap left after government reversed a proposed VAT increase due to political resistance.
Legal Challenge in Motion
In response to the levy hike, the Economic Freedom Fighters (EFF) have filed an urgent application in the Western Cape High Court to halt the fuel tax increase. If the court rules in their favour, motorists might feel more meaningful relief at the pumps. If not, June’s slight drop in fuel prices will likely go unnoticed by many South Africans.
♦️Happening Today♦️
— Economic Freedom Fighters (@EFFSouthAfrica) June 3, 2025
THE EFF WILL TODAY FIGHT THE FUEL LEVY INCREASE IN PARLIAMENT AND IN COURT
The EFF will today in the Standing Committee on Finance and In The Western Cape High Court Oppose the Anti-Poor fuel levy increases! pic.twitter.com/iMbNkWtJ6X
