Motorists across South Africa can breathe a sigh of relief: fuel prices are set to drop again in June, even as the government’s first fuel levy increase in three years comes into effect.
According to month-end data from the Central Energy Fund (CEF), petrol and diesel will both see price cuts on Wednesday, June 4, 2025, marking the third consecutive month of relief at the pumps for most road users.
The expected decreases are as follows:
- Petrol 93 and 95: down 4 cents per litre
- Diesel 0.05% and 0.005% (wholesale): down 37 cents per litre
- Illuminating paraffin: down 41 cents per litre
These decreases account for the fuel tax levy increases announced during Finance Minister Enoch Godongwana’s recent Budget Speech, which included a 16c hike on petrol and a 15c hike on diesel. Despite the new levies, the fuel price balance remains positive thanks to a stronger rand and lower international oil prices.
“The increase, which only applies to the General Fuel Levy, is the first in three years, and is necessary to cover the funding gap created by getting rid of VAT increases.”
Godongwana confirmed that the General Fuel Levy will rise to R4.01/litre for petrol and R3.85/litre for diesel, effective June 4. The Road Accident Fund levy (R2.18/l) and carbon fuel tax (3c/l) remain unchanged.
✅ Why prices are still falling
Despite new taxes, fuel prices remain in decline due to an over-recovery at month-end:
- 52c per litre for diesel
- 20c per litre for petrol
These surpluses absorb the tax increase, resulting in a net decrease.
According to the CEF data for May 28, petrol and diesel prices are benefitting from both a strong rand and a drop in global oil prices, which are down 15% since the start of 2025.
“Lower fuel prices have been driven by a stronger rand against the dollar and lower global oil prices, both of which have stabilised relative to the shocks of April.”
🏦 SARB cuts repo rate as inflation slows
This extended run of fuel price cuts also contributed to a positive shift in monetary policy. On May 29, the South African Reserve Bank (SARB) reduced the repo rate by 25 basis points, bringing it down to 7.25% — a move likely to bring further relief for households and businesses.
As explained in our full breakdown — SA Repo Rate Cut to 7.25%: What It Means for Your Home Loan, Debt & the Economy — lower interest rates can reduce borrowing costs and stimulate spending.
📉 June fuel cut continues trend from March and May
The June fuel decrease follows notable back-to-back relief at the pumps in:
- March: Petrol down by 7c, diesel by up to 24c
- May: Petrol dropped another 22c, diesel up to 42c
And now, even as fuel taxes rise, the June pump prices will continue to edge downward.
📅 When do the new prices kick in?
The Department of Mineral Resources and Energy (DMRE) will announce final official prices before the adjustments take effect on Wednesday, June 4, 2025.
With all eyes now on July’s oil and rand performance, South Africans can, for the moment, enjoy a brief but meaningful reprieve from the country’s ongoing cost-of-living crisis.
“While the tax increase is a blow to road users, further reductions in fuel prices—no matter how small—will help keep inflation under control and also ease the country’s cost-of-living crisis.”
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