Johannesburg: All grades of fuel in South Africa are expected to decrease starting Wednesday, following an announcement by the Department of Mineral and Petroleum Resources. The new pricing adjustments will see a reduction in the cost of petrol, diesel, illuminating paraffin, and LPGas across the country.
According to South African Government News Agency, the Department of Mineral and Petroleum Resources revealed on Tuesday that Petrol 93 (ULP and LRP) and Petrol 95 (ULP and LRP) will both see a decrease of 5 cents per litre. Diesel with 0.05% and 0.005% sulphur content will experience a more significant drop of 36 cents per litre. Additionally, the wholesale price of illuminating paraffin will decrease by 56 cents, while the Single Maximum National Retail Price for illuminating paraffin will see a 75-cent reduction. The Maximum LPGas Retail Price is also set to decrease by 89 cents per kilogram.
The department attributed these changes to various global factors. The average Brent Crude oil price fell from 66.40 USD to 63.95 USD during the review period, influenced by ongoing global trade uncertainties, a reduced global crude oil demand outlook, and the recent OPEC+ announcement regarding planned production increases in June and possibly July 2025. Although the average international petroleum product prices of petrol increased due to switching costs to summer fuel grade, the prices of diesel and illuminating paraffin declined in line with the downward trend of crude oil prices.
Furthermore, the department noted that these factors led to higher contributions to the Basic Fuel Prices of petrol by 19.11 cents per litre, while the contributions to the Basic Fuel Prices of diesel and illuminating paraffin decreased by 11.91 cents per litre and 16.70 cents per litre, respectively. During this period, the Rand strengthened, contributing to the overall reduction in fuel prices.
Additionally, an increase in the fuel levy is anticipated to be implemented this month, which may impact future pricing structures.