South African motorists and transport operators are set to face significant fuel price increases this month, following the Department of Mineral and Petroleum Resources’ official announcement on fuel adjustments for July 2025
The new prices, effective from Wednesday, 3 July, are as follows:
- Petrol 93: increase of 55 cents per litre
- Petrol 95: increase of 52 cents per litre
- Diesel 0.05%: increase of 82 cents per litre
- Diesel 0.005%: increase of 84 cents per litre
According to the department, the primary driver behind these increases is the higher average international oil price experienced during June. Brent Crude rose from $63.95 to $69.36 per barrel during the period under review, fuelled largely by heightened geopolitical tensions in the Middle East.
Military action between Israel and Iran in early June prompted fears of crude oil supply disruptions, particularly around the Strait of Hormuz – a critical channel through which over a quarter of the world’s oil supply is transported.
The resulting volatility caused Brent Crude to surge by over 13% in a single session, marking the most significant daily gain since the onset of the Russia-Ukraine conflict.
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Although a US-brokered ceasefire was reached on 23 June, and oil prices stabilised somewhat, the average for the month remained elevated. As a result, international petroleum product prices also increased, contributing to a rise in the Basic Fuel Price:
- Petrol: +68.45 cents/litre
- Diesel: +100.48 cents/litre
- Illuminating paraffin: +83.20 cents/litre
The rand provided some relief by strengthening slightly against the US dollar – moving from an average of R18.11 to R17.84 – which led to a reduction in the Basic Fuel Price contributions of between 15 and 16 cents per litre across fuel types.
While the currency gains softened the blow, the substantial increase in crude prices outweighed the benefit, resulting in notable cost implications for consumers and businesses alike. Transport operators, in particular, are advised to re-evaluate route planning, fuel usage, and pricing strategies in response to the latest hike.
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