Petrol and diesel prices are likely to decrease marginally in June.
Image: David Ritchie / Independent Media
Fuel taxes are set to increase for the first time in three years, but thankfully a stronger rand will shield South African motorists from fuel price hikes in June.
The next fuel price adjustment will take place on Wednesday, June 04, and unaudited month-end data from the Central Energy Fund shows that minor price decreases are likely for both petrol and diesel.
Petrol was looking set for a decrease of around 20 cents per litre, but with the 16 cent hike in the General Fuel Levy (GFL) set to take effect from Wednesday, a reduction of about four cents is on the cards.
93 Unleaded petrol currently costs R21.29 for a litre in Gauteng, with 95 ULP retailing at R21.40 inland and R20.60 at the coast.
Diesel, whose over-recovery for the month pointed to a 51 cent decrease, now looks set to come down by 36 cents following the 15 cent levy hike for that fuel type.
A stronger rand outweighed marginally weaker international oil prices to create over-recoveries for both petrol and diesel.
However, any further strengthening of oil prices in the coming months will lead to South Africans feeling the pinch of the heavy tax burden that fuel carries.
The 2025 levy increase will see the total tax on petrol rising to R6.37, including the R2.18 Road Accident Fund levy.
Finance Minister Enoch Godongwana raised the General Fuel Levy, and announced various government expenditure cuts, in his third Budget Speech that was proposed on May 21.
These measures were aimed at financing the budget shortfall that resulted after the previously announced Value Added Tax (VAT) increase was cancelled, following considerable political pressure.
On Thursday the Economic Freedom Fighters (EFF) launched an urgent court application to suspend the fuel levy increase. Unless the Western Cape High Court rules in their favour, June’s fuel price relief will be muted to say the least.
Cape Argus
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