Despite the National Treasury’s recent carbon tax hikes, motorists in the country can look forward to a notable decrease in fuel prices this April. The latest data suggests that petrol and diesel prices will see a significant decline, offering much-needed relief for road users ahead of the Easter break.
Two successive months of petrol price reductions might seem too good to be true, but if the current over-recovery trends continue, drivers will be able to stretch their fuel budget further during the upcoming school holidays.
Petrol and Diesel Prices Could Drop by Almost R1
Following a modest price decrease in March, which ended a four-month streak of consecutive fuel hikes, motorists can expect even greater relief in April. March saw a small but welcome reduction, with petrol prices dropping by 7c per litre and diesel decreasing by between 18c and 24c per litre.
The most recent report from the Central Energy Fund (CEF) indicates that petrol prices are currently benefitting from an over-recovery of between 85c and 98c per litre, while diesel prices are projected to drop by approximately 84c per litre.
Expected Changes in Fuel Prices for April
- Petrol 93: Decrease of 85c per litre
- Petrol 95: Decrease of 98c per litre
- Diesel 500ppm: Decrease of 86c per litre
- Diesel 50ppm: Decrease of 87c per litre
- Illuminating paraffin: Decrease of 82c per litre
Government’s Role in Fuel Pricing
In his postponed Budget Speech on 12 March, Finance Minister Enoch Godongwana confirmed that fuel levies would remain frozen, continuing the suspension that has been in place since April 2022. This move aims to mitigate the financial burden on South Africans, particularly in light of the proposed one percentage point VAT increase spread over the next two years.
Carbon Tax Hike Still in Effect
Despite the anticipated fuel price cuts, motorists will still face an increase in the carbon fuel levy from April. The tax will rise by three cents per litre, bringing it to 14c per litre for petrol and 17c per litre for diesel.
“The carbon tax is a crucial component of South Africa’s climate change mitigation strategy. As of 1 January 2025, it increased from R190 to R236 per tonne of carbon dioxide equivalent,” said Godongwana.
Final Decision Rests with the DMRE
While the CEF’s projections are promising, the final fuel price adjustments will be confirmed by the Department of Mineral Resources and Energy (DMRE). Additional factors such as the slate levy and retail margin adjustments could still influence the final prices set for 2 April.
For now, however, the outlook remains positive, and motorists can anticipate some much-needed relief at the pumps in the coming weeks.
Related article: Good News for SA Motorists: No Fuel Tax Hikes in 2025 Budget
