South African motorists have reason to welcome the month of May with a bit more optimism. The Department of Mineral and Petroleum Resources has officially announced a decrease in petrol prices, effective from 7 May 2025, bringing some much-needed financial relief at the pumps. This development comes at a time when households and businesses alike are grappling with rising costs across various sectors.
While international factors often drive local fuel prices, this month’s adjustments are primarily the result of a notable dip in global oil prices. Although a weakening rand did offset some of the benefits, the net result is still a positive one for consumers. Here’s a breakdown of what’s changing and why it matters.
What’s Changing at the Pump?
Fuel prices across the board are set to decrease:
- Petrol 93 and 95 will see a 22 cents per litre reduction.
- Diesel 0.05% will drop by 42 cents per litre.
- Diesel 0.005% will decrease by 41 cents per litre.
These adjustments come as a result of favorable international market conditions, although partially offset by a weaker South African rand.
Why Are Petrol Prices Dropping?
The primary driver behind the price drop is a decline in global oil prices during April 2025. Brent Crude oil, which hovered around $73.63 per barrel on 28 March, climbed to $74.95 by 2 April before falling sharply to $62.82 by 8 April. By the beginning of May, it had settled at $62.13 per barrel.
This downward trend was largely due to a dip in global oil demand, fueled by fears of a looming global recession. These fears stem from escalating trade tariffs and ongoing geopolitical tensions. Additionally, the OPEC+ group’s unexpected decision to ramp up oil production led to an oversupply in the market, further pushing prices down.
The decrease in global oil prices resulted in an over-recovery of 71 cents per litre for petrol and 51 cents per litre for diesel—a significant gain for South African fuel pricing models.
Exchange Rate Dampens Gains
However, not all news was positive. The rand weakened against the US dollar during the same review period, with the average exchange rate moving from R18.2957 to R18.8382 per dollar. This depreciation was influenced by new US trade tariffs and political instability within South Africa’s Government of National Unity.
This weaker exchange rate resulted in an under-recovery of 29.13 cents per litre for petrol and 30.34 cents per litre for diesel, slightly reducing the benefit motorists might have seen from the drop in oil prices.
Slate Levy Update
In accordance with the Slate Levy system, which helps balance over- and under-recoveries in fuel pricing, the levy will remain unchanged at 0.00 cents per litre for both petrol and diesel starting 7 May 2025.
Pump Prices for May 2025
Here’s how the new prices will look at the pump:
| Fuel Type | Inland Price (R/litre) | Coastal Price (R/litre) |
|---|---|---|
| Petrol 93 | R21.29 | R20.50 |
| Petrol 95 | R21.40 | R20.61 |
| Diesel 0.05% | R18.90 | R18.11 |
| Diesel 0.005% | R18.94 | R18.18 |
What This Means for You
The fuel price drop brings some relief to both private motorists and commercial transport operators, especially as South Africans continue to grapple with broader economic pressures. While the weaker rand limited the potential savings, the overall outlook for May 2025 is still positive for those hitting the roads.
Related article: Petrol Price Increases Announced for South Africa: What to Expect in 2025/26
