By Johnathan Paoli
Motorists across South Africa will face higher fuel costs starting Wednesday, as the Mineral and Petroleum Resources Department has confirmed significant increases to fuel prices for the new month.
Making the announcement on Tuesday, departmental spokesperson Yolanda Mhlathi highlighted the complex factors in determining fuel prices within the country.
“South Africa’s fuel prices are adjusted monthly, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g. shipping costs,” Mhlathi said.
The changes are being driven by a combination of rising international oil prices, ongoing geopolitical tensions in the Middle East, and shifts in international product markets despite a stronger rand cushioning the blow slightly.
Announcing the adjustments on Tuesday, the Director Maake said the increases were informed by monthly evaluations of global and domestic pricing factors.
South Africa, which imports both crude oil and refined petroleum products, determines its fuel prices largely based on international benchmarks and local currency exchange performance.
Confirmed Fuel Price Changes for July 2025 include a 55 cents per litre (c/l) increase in Petrol 93; a 52 c/l increase in Petrol 95; an 82 c/l increase in diesel containing 0.05% sulphur, and an 84 c/l increase in diesel containing 0.005% sulphur.
Furthermore, illuminating paraffin wholesale prices is set to be increased by 67 c/l, while the set maximum retail price increased by 89 c/l.
Liquid petroleum gas will decrease by 57 cents per kilogram for all the provinces, except the Western Cape who will experience an increase of 89 c/l.
The most significant contributor to the July fuel price hike is the steep rise in Brent Crude oil prices.
The average price rose from $63.95 to $69.36 per barrel during the review period (30 May to 26 June), largely driven by renewed geopolitical instability in the Middle East.
A flare-up in conflict between Israel and Iran, including reported attacks on nuclear infrastructure and retaliatory airstrikes, rattled energy markets and heightened fears of supply disruptions.
As a result, the average international prices for petrol, diesel, and illuminating paraffin surged.
The department said this led to upward contributions to the Basic Fuel Price (BFP) by 68.45 c/l for petrol; 100.48 c/l for diesel; and 83.20 c/l for illuminating paraffin.
While international oil and product prices increased, the rand appreciated modestly against the US dollar, offering some relief to local consumers.
The average exchange rate improved from R18.11 to R17.84/USD, resulting in a downward price pressure of approximately 15.71 c/l for petrol; 16.35 c/l for diesel; and 16.05 c/l for illuminating paraffin.
Without the rand’s gains, fuel prices could have risen by nearly R1/litre in some categories.
The Slate Levy, which compensates for cumulative fuel price under-recoveries, remains unchanged at 0 cents per litre for petrol and diesel.
As of the end of May, the cumulative slate balance showed a healthy surplus of R5.213 billion, negating the need for further recovery charges.
The Octane Differential between 93 and 95 petrol has also been revised.
In accordance with the department’s quarterly Working Rules, adjustments will take effect on 2 July and result in zone-based price differences across the country.
Additionally, Energy and Mineral Resources Minister Gwede Mantashe has approved a 14% increase in the Supply Cost Recovery on the Maximum Refinery Gate Price (MRGP) for LPGas imported through Saldanha Bay, Western Cape.
The interim measure, valid for 24 months, raises the LPGas retail price in the province by R1.90/kg to R36.08/kg.
In contrast, LPGas prices in the rest of the country will decrease by 57 cents/kg, reflecting lower propane and butane prices on the international market.
The fuel price increases come at a time when South African households are already struggling with rising food costs and stagnant income growth.
According to the latest Household Affordability Index, zero-rated staple foods have risen by 4.1% year-on-year.
The rising cost of fuel will likely add further pressure on transportation, logistics, and ultimately food prices.
The department’s Director of Fuel Pricing Mechanism Robert Maake confirmed that volatility in global markets is likely to persist.
“The conflict in the Middle East is the primary driver of the latest price hike. However, we must also acknowledge the cushioning effect of the stronger rand, which helped limit increases,” Maake said.
He added that LPGas pricing in the Western Cape would remain a concern due to logistical cost pressures at the Port of Saldanha Bay.
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