Motorists across South Africa are in for a rollercoaster ride at the pumps this June, with early data pointing to a fuel price drop—but only for some.
While diesel drivers are likely to see welcome relief, petrol users might not be as lucky, thanks to a looming fuel tax hike set to kick in on June 5.
Good news for diesel drivers
According to mid-month data from the Central Energy Fund (CEF), diesel prices are on track to decline for several consecutive months, following notable back-to-back relief at the pumps from March through May. The decrease is driven by stronger global supply, lower crude oil prices, and a more stable rand-dollar exchange rate.
As of May 28, diesel was showing an over-recovery of nearly R1.20 per litre, which could translate into noticeable savings at the pump come June 5.
This is particularly good news for logistics companies and everyday consumers who rely on diesel-powered transport and delivery services.
Petrol outlook not as promising
For petrol, the outlook is less optimistic. Although there is still a modest over-recovery, it’s too slight to counter the upcoming R0.30 per litre increase in the fuel levy, announced in Finance Minister Enoch Godongwana’s revised 2025 Budget 3.0.
This tax hike—deferred from April to June to provide temporary relief—will be added to both grades of petrol and diesel, but its impact will be felt most by petrol users, where global price trends have been less favourable.
In other words: while diesel may still drop, petrol could either remain flat or increase slightly once the levy is factored in.
Here’s what you might pay in June (estimated)
Based on current projections and expected tax adjustments:
- Petrol 95 (Inland): May drop by 5–10c/litre, but levy could push it up by ~20c
- Diesel (Wholesale): Could decrease by 60c to R1.10/litre, even after the levy
The final prices will be confirmed by the Department of Mineral Resources and Energy (DMRE) and take effect from Thursday, June 5.
What this means for your wallet
Fuel prices remain a key driver of inflation in South Africa, affecting the cost of food, transport, and electricity. While a diesel drop may offer short-term relief for businesses, the petrol tax increase could add pressure on already-stretched households, especially those commuting long distances.
Economists warn that without significant currency strengthening or a major oil price dip, fuel price volatility will persist throughout winter.
NOWinSA insight
South Africans are urged to fill up before Thursday, June 5 if possible—especially petrol users. As fuel remains a political and economic flashpoint ahead of the national elections, June’s price adjustments could fuel broader debates about government tax policies and their impact on the poor.
Stay tuned to NOWinSA for confirmed fuel prices on June 3.
Have you felt the fuel pinch this year? Share your story with us at info@nowinsa.co.za.
