Fuel Price Brings Much-needed Relief To Transport Industry

South African transporters are set to benefit from a substantial cut in fuel prices from 2 April.

The Department of Mineral Resources and Energy has announced significant cuts in fuel prices, with diesel seeing the most notable decline.

Diesel with 0.05 sulphur will decrease by 83.80 cents per litre c/l, while diesel with 0.005 sulphur will drop by 85.80 c/l. These reductions will provide much-needed relief to logistics companies managing high fuel expenses.

Additionally, the price of petrol 93 ULP LRP will decrease by 58 c/l, and petrol 95 ULP LRP will drop by 72 c/l. The wholesale price of illuminating paraffin will decline by 81.70 c/l, and the Single Maximum National Retail Price will decrease by R1.14 per litre. The retail price of LP Gas is set to decline by 79c/kg.

The department said the primary reasons for the downward adjustment were a decrease in international crude oil and petroleum product prices and the recent appreciation of the rand.

The average price of Brent Crude declined from 74.89 per barrel to 71.04 during the review period. This was largely influenced by stable supply from non-OPEC countries and a moderate increase in output expected from OPEC producers in April.

International petroleum product prices followed the downward trend, contributing to lower basic fuel prices. Diesel prices specifically saw a reduction of 80.10 c/l in this regard.

The South African rand appreciated against the US dollar, strengthening from R18.50 to R18.30 per USD, leading to a further reduction in fuel prices. Diesel prices benefited with an additional 12.42 c/l decrease due to the stronger currency.

The department said the cumulative slate levy balance for petrol and diesel amounted to R2.435 billion as of February 2025. As a result, the slate levy remains unchanged at zero cents per litre, ensuring stability in pricing structures.