Minister of Mineral and Petroleum Resources in South Africa Gwede Mantashe announced a price drop in all grades of petrol and diesel on Tuesday.
Image: Tumi Pakkies/Independent Newspapers
Minister of Mineral and Petroleum Resources, Gwede Mantashe announced a price drop in all grades of petrol and diesel on Tuesday.
The decreases come into effect on Wednesday.
Mantashe said South Africa’s fuel prices are informed by international and local factors. International factors include that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs.
Mantashe added that the crude oil price is one of the main reasons for the drop.
“The average Brent crude oil price decreased from 74.89 US dollars (USD) to 71.04 USD during the period under review. The main contributing factors are the continued supply from non-OPEC countries as well as anticipated increases in supply, though moderate, from OPEC + producers in April 2025.”
Mantashe stated the average international petroleum product prices followed the decreasing trend of crude oil prices. “This led to lower contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 66.36 cents per litre (c/l), 80.10 c/l and 72.07 c/l respectively.”
Mantashe added that the Rand appreciated on average against the US dollar (USD), (from 18.50 to 18.30 Rand per USD) during the period under review when compared to the previous one. “This led to lower contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 11.72 c/l, 12.42 c/l and 12.24 c/l respectively.”
The cumulative slate amounted to a positive balance of R 2.435 billion for petrol and diesel at the end of February 2025. “In line with the provisions of the Self-Adjusting Slate Levy Mechanism, a slate levy remains unchanged at zero cents per litre in the price structures of petrol and diesel with effect from the 2nd of April 2025," the minister said.
Mantashe added that the Minister of Finance announced that the Fuel Levy on petrol and diesel will remain the same at 396.00 c/l and 384 c/l respectively, while the Road Accident Fund (RAF) Levy on both petrol and diesel will remain at 218.00 c/l in his Budget Speech on the March 12.
Cape Times