Cape Town – South African motorists will see lower fuel prices in May, with petrol dropping by up to 19 cents per litre and diesel by 37 cents per litre. This decline is driven by falling global oil prices, which have been triggered by various economic factors, including US tariffs on imports that have weakened global trade and oil demand, according to reports.
The Central Energy Fund (CEF), which monitors oil prices and the rand-to-dollar exchange rate, has provided projections for the upcoming fuel price adjustments in South Africa. Motorists can expect the following changes in May 2025:
- Petrol 93 – decrease of 18 cents per litre
- Petrol 95 – decrease of 19 cents per litre
- Diesel 0.05% – decrease of 37 cents per litre
- Diesel 0.005% – decrease of 37 cents per litre
Despite fluctuations in the rand against the dollar, the currency has recently recovered below R19/USD. Improved investor confidence in South Africa’s Government of National Unity and higher gold prices are contributing to a more optimistic short-term economic outlook for the country. Experts note that while there are concerns about weaker prices for some exports, such as platinum and coal, the overall reduction in energy import costs and easing inflation concerns are positive developments.
Fuel price adjustments are typically made on the first Wednesday of the month, and the upcoming changes are set to take effect on May 7, 2025. This follows a significant reduction in fuel prices earlier in April, where the price of 95 unleaded petrol was lowered by more than 70 cents per litre, bringing it to R21.62 in Gauteng, which is R3.50 cheaper than a year ago. Additionally, wholesale diesel prices were cut by over 83 cents, with the Gauteng wholesale price now at R19.32 per litre, down from R22.45 a year ago.
The drop in fuel prices is largely attributed to a substantial decline in global oil prices, particularly Brent crude oil, which fell to four-year lows of around $58 a barrel earlier this month. Currently, Brent is trading around $64, a significant decrease from $90 a year ago. The ongoing weakness in oil prices is influenced by a combination of factors, including concerns over global recessions that are expected to weigh on fuel demand and a recent decision by OPEC+ to raise production.
As the rand-dollar exchange rate reached nearly R19.90 earlier this month, there were fears regarding the stability of South Africa’s economic policies. However, the rand has since strengthened and is currently trading around R18.55, a recovery from below R18.30 a month ago. This improvement in the rand's value has helped to mitigate the negative impacts of the fluctuating oil prices.
In summary, South African motorists can look forward to reduced fuel prices in May, driven by a combination of falling global oil prices and a recovering rand. These changes reflect a broader trend of easing inflation concerns and improving economic conditions, despite challenges posed by weaker export prices. The adjustments in fuel prices will not only make driving more affordable for South Africans but also signal a potential shift in economic stability as the country navigates its way through global economic uncertainties.
