South African motorists and businesses are facing a fresh burden as the Department of Mineral and Petroleum Resources officially announces a significant fuel price increase, effective Wednesday, 2 July 2025.
This marks the first upward adjustment after four months of hopeful reprieve, potentially indicating a new trend of rising costs that could impact everyday life and economic activity moving forward, reports Cape {town} Etc.
The confirmed price hikes, which come into effect next week, will see petrol prices rise dramatically across the country. Specifically, petrol will increase by 55.00 cents per litre for both 93 ULP and LRP, and by 52.00 cents per litre for 95 ULP and LRP.
Diesel prices will also see a substantial increase of 82.00 cents per litre for 0.05% Sulphur diesel and 84.00 cents per litre for 0.005% Sulphur diesel in both Gauteng and coastal regions.
Additionally, illuminating paraffin prices will rise wholesale by 67.00 cents per litre and a staggering 89.00 cents per litre at the retail level. In contrast, there will be a slight decrease of 57.00 cents per kilogram for LPG.
Lebo Ramolahloane, the National Vice Chairperson of the South African Petroleum Retailers Association (SAPRA), explained that these adjustments reflect movements in global oil prices and the exchange rate during June.
‘Global tensions between the warring parties in the Middle East have contributed to short-term volatility in oil markets which in turn has impacted the monthly average of Brent crude and the rand or dollar exchange rate. This reflected in the resultant under recoveries that built up throughout June increasing prices at our fuel pumps,’ Ramolahloane stated.
Interestingly, the price hikes have occurred despite a notable easing in Brent crude prices towards the end of June, indicating that the cumulative effects of preceding market fluctuations and exchange rate instability have further complicated the situation for fuel retailers.
The increase in diesel prices, particularly concerning given its critical role in logistics and agriculture, two key pillars of the South African economy, could have broad-reaching implications, limiting profit margins for businesses that rely heavily on transportation and fuel.
However, Ramolahloane struck a cautiously optimistic note regarding future price trends.
He mentioned that a potential ceasefire between Iran and Israel could ease current tensions in the Middle East, which may, in turn, stabilise oil prices.
Additionally, if the South African rand continues to strengthen against the dollar and international oil prices decline further, drivers may see a welcome reduction in fuel prices in the coming months.
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Picture: Gallo Images / Misha Jordaan
