Following an earlier price drop prediction report, South Africans are set to enjoy a notable relief at the pumps this month. The Department of Mineral Resources and Energy (DMRE) officially confirmed that petrol and diesel prices will significantly drop, offering a much-needed reprieve for motorists.
Effective from Wednesday, May 7, petrol prices will be reduced by 22 cents per litre for both 93 and 95 unleaded, while diesel will see a more significant decrease of 41 to 42 cents per litre, depending on its sulphur content.
This final report confirms a clear downward trend—as reflected in the DMRE latest chart since March, continuing through April and into May, driven largely by global oil market dynamics.
Key changes in prices
The recent adjustments in fuel prices are detailed below:
| Type of Fuel | Price Alteration |
|---|---|
| 93 Octane Petrol | Decrease of 22c/l |
| 95 Octane Petrol | Decrease of 22c/l |
| Diesel 0.05% (bulk) | Decrease of 42c/l |
| Diesel 0.005% (bulk) | Decrease of 41c/l |
| Illuminating Paraffin | Decrease of 31c/l |
| LPGAS | Increase of 46c/kg |
Reasons behind the reductions
The drop in fuel prices is a response to the decline in international oil prices during April, with Brent crude decreasing from $71.04 to $66.40 per barrel. The DMRE attributed this decline to the tariff and trade conflict initiated by the US, leading to concerns of a global economic downturn and a potential reduction in crude oil demand.
Despite the depreciation of the rand against the USD, averaging at R18.83/USD (up from R18.29 previously), the substantial decrease in global oil prices counteracted the currency challenges. In April, the rand briefly weakened to almost R19.90/USD due to uncertainties surrounding US tariffs and the Democratic Alliance’s role in the Cyril Ramaphosa-led Government of the National Unity (GNU).
Tax modifications & fees
The Fuel Levy (396c/l for petrol, 384c/l for diesel) and Road Accident Fund Levy (218c/l) remained unchanged in Finance Minister Enoch Godongwana’s March budget. However, the carbon fuel levy rose by 3c/l, resulting in total fuel levies of 399c/l for petrol and 387c/l for diesel.
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Breakdown of pump prices
The following are the adjusted prices at the pumps:
Inland rates (Gauteng)
- 95 Octane Petrol: R21.40/l (reduced from R21.62)
- Diesel 0.05%: R18.90/l (decreased from R19.32)
Coastal rates
- 95 Octane Petrol: R20.61/l (down from R20.83)
- Diesel 0.05%: R18.11/l (lowered from R18.53)
Future prospects: Uncertainty in oil markets
The oil market remains unstable due to OPEC+ output increases and concerns over a potential global economic downturn. While the reductions in May offer relief, analysts caution that any fluctuations in the rand or unexpected geopolitical events could reverse these gains in the upcoming months.
Closing thoughts
For the time being, South African motorists can enjoy a temporary reduction in fuel costs. The sustainability of this trend will be determined by global market dynamics and local economic conditions, emphasising the significance of every saving at the fuel stations.
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