Johannesburg: The Department of Mineral Resources and Energy has announced the adjustment of fuel prices with effect from 5 March 2025. Based on current local and international factors, the fuel prices for March 2025 will be adjusted as follows: Petrol 93 and Petrol 95 will see a decrease of 7 cents per litre, Diesel (0.05% sulphur) will drop by 17.5 cents per litre, and Diesel (0.005% sulphur) will experience a 23.5 cents per litre decrease. Meanwhile, Illuminating Paraffin will decrease by 6 cents per litre, with the SMNRP for IP decreasing by 8 cents per litre, and the Maximum LP Gas Retail Price dropping by 2 cents per kilogram.
According to South African Government News Agency, the fuel price adjustments are primarily influenced by the average Brent Crude oil price, which decreased from $77.41 to $74.89. The adjustments are attributed to continued lower global demand and an oversupply from non-OPEC countries, coupled with Russia/Ukraine ceasefire negotiations that could potentially increase global crude oil supply.
The department highlighted that while the average international petroleum product prices of petrol increased due to US refinery shutdowns and maintenance, the prices of diesel followed the decreasing trend of crude oil. These factors resulted in varying contributions to the Basic Fuel Prices: a 6.92 cents per litre increase for petrol and an 8.09 cents per litre increase for illuminating paraffin, while diesel saw a 7.66 cents per litre decrease.
The Rand’s appreciation against the US Dollar, from 18.73 to 18.50 Rand per US Dollar, also contributed to lower Basic Fuel Prices for petrol, diesel, and Illuminating Paraffin by 13.54 cents per litre, 14.45 cents per litre, and 14.15 cents per litre, respectively. The department reported a positive cumulative slate balance of R2.29 billion for petrol and diesel at the end of January 2025.
The slate levy remains unchanged at zero cents per litre based on the Self-Adjusting Slate Levy Mechanism. However, the IP Tracer Dye Levy applicable to Diesel, which had been temporarily increased from 0.1 cents per litre to 1.0 cents per litre, will decrease to 0.5 cents per litre effective 5 March 2025.