South African motorists have received a timely dose of good news just ahead of the busy Easter travel season. Starting April 1, 2025, the price of fuel across the country is set to drop significantly, offering financial relief for drivers already grappling with rising living costs. This marks the second consecutive month of decreases a trend welcomed by both commuters and logistics companies.
Fuel Prices Drop Across the Board
According to the Department of Mineral Resources and Energy, the latest adjustments will see petrol and diesel prices drop by notable margins. Inland motorists will now pay R21.62 per litre for 95 octane petrol and R21.51 for 93 octane, reflecting a 72 and 58 cents per litre decrease respectively. Coastal areas will see 95 octane drop to R20.83 per litre.
Diesel users will benefit even more, with reductions of 84 to 86 cents per litre depending on the sulphur grade. Illuminating paraffin has also seen a price cut of 82 cents per litre, offering some relief for lower-income households that depend on it for cooking and heating.
What’s Driving the Price Drop?
The decline is largely due to a combination of international and domestic economic factors. Brent crude oil prices dropped from an average of $74.89 to $71.04 per barrel during the latest review period. This was driven by an oversupply in global markets, particularly from non-OPEC producers, and expectations of increased output from OPEC+ members.
On the currency front, the South African rand strengthened slightly against the US dollar, which helped lower the cost of fuel imports. The average exchange rate improved from R18.50 to R18.30 to the dollar, providing additional downward pressure on pump prices.
Crucially, Finance Minister Enoch Godongwana’s decision not to increase the general fuel levy or Road Accident Fund levy in the 2025 Budget also contributed to the decline. Although the carbon fuel levy increased modestly by three cents, its impact was offset by the broader cost-saving factors.
Easter Travel Just Got Cheaper
The timing of the fuel price drop couldn’t be better. With millions of South Africans planning road trips to visit family, friends, or holiday destinations over the Easter long weekend, lower fuel costs will help reduce the financial burden of travel. For long-distance drivers and logistics companies alike, the savings at the pump could be significant.
Public transport operators and ride-hailing services may also benefit, potentially keeping fare increases at bay for now. And with fuel being a major input cost for goods transportation, the broader economy could feel a small but positive ripple effect in the form of slower price hikes on essential goods.
Looking Ahead
While the current drop is welcome news, fuel prices remain vulnerable to volatility in global oil markets and exchange rate movements. Any shifts in geopolitics, particularly involving oil-producing nations, or further weakening of the rand could reverse the trend.
For now, however, South African motorists can breathe a little easier knowing they’ll be paying less at the pump this April just in time to hit the road for Easter.