The Department of Mineral Resources and Energy (DMRE) announced the official fuel price adjustments effective Wednesday, arch 5, 2025, marking a slight reprieve for consumers after four consecutive months of increases.
March 2025 petrol prices will drop by 7 cents per litre, while diesel decreases range between 17.5 and 23.5 cents per litre, depending on the grade.
Price Adjustments at a Glance
- Petrol (93 and 95 ULP/LRP): 7c/l decrease.
- Diesel 0.05% sulphur: 17.5c/l wholesale decrease.
- Diesel 0.005% sulphur: 23.5c/l wholesale decrease.
Illuminating paraffin (wholesale): 6c/l decrease.
- Illuminating paraffin (SMNRP): 8c/l decrease.
- LPGAS maximum retail price: 2c/kg decrease.
Inland and Coastal Pump Prices
The new prices effective 5 March 2025 are as follows:
Inland:
- Petrol 95: R22.34/l | Petrol 93: R22.09/l
- Diesel 0.05%: R20.16/l | Diesel 0.005%: R20.21/l
Coastal:
- Petrol 95: R21.55/l | Petrol 93: R21.30/l
- Diesel 0.05%: R19.37/l | Diesel 0.005%: R19.45/l
Note: Diesel prices reflect wholesale rates; pump prices may differ slightly.
What’s Driving the Decrease?
Two factors contributed to the cuts:
1. Rand appreciation: The average rand/USD exchange rate strengthened to 18.5047 (31 Jan–27 Feb 2025) from 18.7343 previously, reducing Basic Fuel Price contributions by 13.54c/l (petrol), 14.38c/l (diesel), and 14.15c/l (paraffin).
2. Global oil trends: International petrol and illuminating paraffin prices rose marginally due to supply constraints, while diesel dipped amid inconsistent demand and fluctuating crude oil prices.
DMRE spokesperson, Robert Maake, noted:
“Lower global oil prices and a stronger rand contributed to a decrease by about 13c on petrol and 14c on both diesel and LP. The slate levy remains unchanged at zero cents per litre… And LP decreases from 1c to 0.5c per litre.”
Slate Levy and LP Gas Adjustments
In line with the Self-Adjusting Slate Levy Mechanism:
- The Slate Levy on petrol and diesel remains 0.00c/l.
- The levy on liquefied petroleum gas (LPGAS) decreased from 1.00c/l to 0.50c/l, aligning with the 2c/kg retail price reduction.
Context: Four-Month Streak Broken
February saw sharp increases (82c/l for petrol, over R1/l for diesel), making March’s cuts a welcome reversal. DMRE emphasised that while February began with recovery pressures, stabilising oil prices and currency gains enabled the relief.
Impact on Households and Businesses
- Diesel users, particularly in agriculture and logistics, benefit most from the 18–24c/l cuts, easing operational costs.
- Illuminating paraffin reductions (6–8c/l) provide modest relief for low-income households reliant on the fuel for heating and lighting.
- LPGAS savings (2c/kg) offer incremental benefits for cooking gas consumers.
Looking Ahead
Motorists and households will see modest savings, though the adjustments underscore South Africa’s vulnerability to global oil and currency volatility. While March’s cuts break a four-month hike streak, the Department cautioned that geopolitical tensions and exchange rate fluctuations could reverse trends in coming months.
Critically, ongoing load shedding uncertainty — which disrupts refining capacity and distribution networks — adds another layer of risk, potentially triggering sudden price shifts. This underscores the need for cautious optimism, as the interplay of international markets and local infrastructure challenges keeps the fuel landscape unpredictable.
NOTE: All changes take effect from Wednesday March 5. For real-time updates, visit the DMRE’s official platforms:
- X (formerly Twitter) platform: @DMRE_ZA
- Website: http://www.dmre.gov.za/
- Facebook: DoERSA
