June 2025 Fuel Price Hike – South Africans are facing another economic blow as the Department of Mineral Resources and Energy (DMRE) has officially announced a significant fuel price increase, effective from June 5, 2025. With global oil prices climbing and the local currency under pressure, petrol and diesel prices are now set to reach historic highs. This hike is expected to impact millions of consumers, transport operators, and small businesses across the country. The increase, which includes changes to taxes, levies, and global benchmark costs, has prompted widespread concern from civil society organisations, economists, and ordinary citizens. In this article, we explain why the price hike is happening, what the new costs are, how it will affect the economy, and what measures can be taken to reduce its burden.
Why Are Fuel Prices Increasing in June 2025?
Multiple global and domestic factors have converged to push fuel prices to their highest levels ever seen in South Africa. These factors include international crude oil supply concerns, a weak rand, and increased domestic fuel levies imposed by the government. The ongoing geopolitical instability in key oil-producing regions such as the Middle East has led to major disruptions in global supply chains. Additionally, OPEC+ countries have maintained their production cuts, further tightening global supply. As a result, Brent crude oil prices have surged beyond $90 per barrel. At the same time, the South African rand has weakened against the US dollar, making it more expensive to import fuel. This currency devaluation has been worsened by investor concerns around domestic fiscal policy, slow economic growth, and ongoing power outages.
- Brent crude oil has surged past $90 per barrel due to global supply disruptions.
- The South African rand has depreciated against the US dollar, raising import costs.
- Government has increased the General Fuel Levy and RAF Levy, adding to pump prices.
- Winter demand and poor refinery performance are worsening the fuel supply crunch.
- Rising logistics and distribution costs are adding further upward pressure.
Official Petrol and Diesel Prices for June 2025
The following table, published by the Department of Energy, shows the newly adjusted fuel prices applicable from June 5, 2025, across major regions in South Africa. These prices include taxes, levies, and margins and represent the total cost per litre at the pump.
| Fuel Type | Inland Price (Gauteng) | Coastal Price (Durban/Cape Town) | Price Increase |
|---|---|---|---|
| 93 Octane Petrol | R25.69 | R24.97 | +R1.80/litre |
| 95 Octane Petrol | R26.33 | R25.59 | +R1.82/litre |
| 50ppm Diesel | R25.78 | R24.85 | +R1.64/litre |
| 500ppm Diesel | R25.35 | R24.42 | +R1.60/litre |
| Illuminating Paraffin | R19.89 | R18.90 | +R0.98/litre |
| LPGas (per kg) | R37.55 | R35.82 | +R1.10/kg |
This sharp rise in both petrol and diesel will affect all sectors that rely on transport and mobility. Notably, diesel, which is widely used in freight, agriculture, and industry, has seen a rise of over R1.60 per litre, which could severely impact production costs and logistics pricing in coming weeks.
How This Price Hike Will Affect Everyday Life
The fuel price hike is not just a concern for motorists. It has a domino effect across every aspect of daily life in South Africa, particularly for low and middle-income households.
- Public transport fares are expected to rise as taxi and bus operators pass the added costs on to passengers.
- Food prices will likely increase as the cost of transporting goods rises across long distances.
- Small business owners who depend on logistics and fuel-based services will experience tighter profit margins.
- Many households will be forced to re-budget as more of their monthly income is directed toward fuel and transport.
- Power utility companies may also face additional diesel generation costs, especially during periods of load shedding.
The overall result will be higher inflation, increased cost of living, and reduced disposable income for the majority of citizens.
Breakdown of Fuel Price Composition in South Africa
To better understand why South African fuel prices are so high, it’s important to look at what makes up the cost of a litre of petrol or diesel. The table below gives a rough breakdown of the major components that make up the retail price.
| Component | Approximate Cost (per litre) |
|---|---|
| Basic Fuel Price (BFP) | R12.20 |
| General Fuel Levy | R4.18 |
| Road Accident Fund (RAF) | R2.18 |
| Wholesale Margin | R0.50 |
| Retail Margin | R2.30 |
| Distribution and Storage | R1.25 |
| Value-Added Tax (15%) | R3.72 |
| Total Estimated Price | R26.33 |
This composition shows how heavily South African fuel prices are influenced by taxation. Together, levies and taxes account for more than 30% of the total price consumers pay at the pump.
What Can Consumers Do to Reduce the Impact?
While it is difficult for ordinary South Africans to influence global oil prices or government tax policies, there are some practical steps that individuals and households can take to soften the blow.
- Plan your travel efficiently to avoid unnecessary trips and fuel waste.
- Switch to public transport options where available and reliable.
- Consider carpooling with coworkers, neighbours, or friends.
- Drive more efficiently – avoid speeding, hard braking, and excessive idling.
- Use smartphone apps that help find the cheapest fuel prices in your area.
- Service your vehicle regularly to ensure fuel efficiency is optimized.
While these changes may seem small, together they can help reduce monthly fuel expenses and lower overall household costs.
The June 2025 fuel price hike represents a major financial shock to South Africa’s economy. With both petrol and diesel prices soaring to unprecedented levels, consumers are urged to adapt their spending habits and find ways to reduce fuel usage. While the government has cited global market forces as the primary driver, the added tax burdens have drawn criticism from advocacy groups and the public alike. Unless global conditions improve and domestic currency strengthens, South Africans may continue to face elevated fuel prices for the foreseeable future. In the meantime, making informed choices, staying updated, and using available tools to reduce consumption can provide some relief in these challenging times.
Department of Energy Contact Details for Queries and Complaints
If you have specific questions about the new fuel pricing structure, or would like to report fuel price irregularities, the Department of Mineral Resources and Energy has provided the following contact channels:
- Website: www.energy.gov.za
- Telephone: 012 406 7500
- Email: [email protected]
- Office Address: Trevenna Campus, 70 Meintjies Street, Sunnyside, Pretoria, 0002
Members of the public can also use the website to track historical fuel price data, understand how prices are calculated, or lodge formal complaints.
Frequently Asked Questions (FAQs)
Q1: When will the new fuel prices take effect?
A: The new prices come into effect from Wednesday, June 5, 2025, at midnight.
Q2: How often are fuel prices reviewed in South Africa?
A: Fuel prices are reviewed and adjusted on the first Wednesday of every month.
Q3: Is there a chance prices will decrease soon?
A: That depends on global crude oil movements, the rand-dollar exchange rate, and government levy decisions. There is no guarantee of a price drop in the short term.
Q4: Why is diesel often more volatile than petrol in price?
A: Diesel is influenced by different international supply contracts, industrial demand, and local usage for power generation, especially during periods of load shedding.
Q5: Is there any fuel subsidy or support available?
A: Currently, there is no active fuel subsidy or government relief programme for motorists in place.