JOHANNESBURG – The Department of Mineral Resources and Energy (DMRE) has confirmed uneven fuel price cuts for June, with petrol eking out a 5-cent drop while diesel plunges 37 cents per litre.
The fourth straight month of relief, effective 4 June, exposes how Finance Minister Enoch Godongwana’s fuel levy hike disproportionately impacted petrol prices.
(Track trends — March’s drop, April larger cut & May)
Why diesel won big
Minister Gwede Mantashe cited dual tailwinds driving June’s cuts:
“The lower prices are due to an improvement in the rand/US dollar exchange rate and the decrease in the international oil price.”
Key drivers behind diesel’s outsized 37c drop:
- ⬇️ Global oil shift: Diesel prices fell faster than petrol internationally amid cooling demand.
- 💹 Rand surge: 9% currency strengthening (R18.84 → R18.11/$) slashed import costs.
- ⚖️ Tax tilt: General Fuel Levy hike took 16c/l from petrol vs 15c/l from diesel.
Confirming unchanged accident fees, the DMRE added:
“The Road Accident Fund levy remain unchanged at 218.00 cents per litre on the price structures of petrol and diesel.”
This static RAF levy combined with petrol’s higher GFL (R4.15/l) gutted its relief potential – explaining why petrol’s 5c cut feels symbolic while diesel scored substantial savings.
June 2024 price breakdown (Inland)
| Fuel Type | New Price | Change | Tax Burden |
|---|---|---|---|
| Petrol 95 | R21.35/l | ▼5c | R6.33/l (30%) |
| Diesel 0.05% | R18.53/l | ▼37c | R6.20/l (33%) |
| Diesel 0.005% | R17.70/l | ▼37c* | R6.20/l (35%) |
| Illuminating Paraffin | ▼56c/l | ||
| *Coastal diesel 50ppm drops to R17.81/l (▼37c). |
Hidden costs biting back
- Pipeline tariffs: Added up to 2.6c/l in 4 districts (9C, 10C, 11A, 11C).
- Cumulative relief: Diesel has fallen R1.36/l since March vs petrol’s R0.59/l.
- Inflation lifeline: Lower fuel costs enabled SARB’s rate cut, but risks loom:
“Should oil rebound, petrol users face immediate pain with minimal cushion.” – DMRE Insider
The road ahead
While diesel users and paraffin-dependent households (▼56c/l) gain real relief, petrol’s 5c cut is largely symbolic. With levies now consuming 30% of pump prices, South Africans remain vulnerable to global shocks.
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