Diesel prices continue to play a significant role in shaping the profitability and operational efficiency of transport and logistics businesses across Africa. For fleet operators, owner-drivers, and supply chain managers, understanding diesel price trends is not only relevant for budgeting but can also influence strategic decisions such as route planning, depot location, and cross-border operations.
According to the latest data from GlobalPetrolPrices.com, there has been a slight drop in diesel prices globally in June 2025, including a modest decrease in South Africa’s average pump price. While the rankings among Africa’s cheapest diesel countries remain mostly unchanged, the fluctuation in fuel costs tells a deeper story of economic policy, global oil dynamics, and regional energy strategies.
Africa’s Top 10 Cheapest Diesel Prices – June 2025
Rank (Africa) | Rank (World) | Country | Price/Litre (ZAR) |
---|---|---|---|
1 | 3 | Libya | R0.49 |
2 | 4 | Algeria | R4.02 |
3 | 6 | Egypt | R5.57 |
4 | 7 | Angola | R5.90 |
5 | 16 | Nigeria | R11.66 |
6 | 19 | Sudan | R11.81 |
7 | 25 | Tunisia | R13.50 |
8 | 41 | Ethiopia | R15.63 |
9 | 49 | Liberia | R16.98 |
10 | 55 | Gabon | R18.28 |
Source: GlobalPetrolPrices.com (June 2025)
South Africa: Slight Relief but Still Lagging
South Africa’s diesel price for June 2025 averaged R21.11 per litre, a small improvement from R21.48 in May. While the decrease may seem negligible, it offers a glimmer of hope to an industry battling rising operational costs. However, South Africa ranks 19th in Africa and 89th globally, far behind its North African counterparts.
Several factors contribute to South Africa’s relatively high diesel prices. Unlike countries like Libya, Algeria, and Egypt — which benefit from significant fuel subsidies — South Africa operates on a cost-recovery model where multiple levies and taxes are applied to the base fuel price. These include:
- Basic Fuel Price (BFP): Reflecting international import costs.
- General Fuel Levy (GFL): A government tax contributing to the national budget.
- Road Accident Fund (RAF) Levy: Insurance funding for road crash victims.
- Slate Levy: Balances over/under recoveries in fuel price calculations.
- Wholesale and Retail Margins: Cover distribution, storage, and retail overheads.
Collectively, these levies contribute to a diesel price that is almost 43 times higher than Libya’s.
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North African Dominance and Policy Implications
The top 5 countries with the cheapest diesel are all located in North and West Africa, where government subsidies are used to cushion the impact of global oil market volatility.
This level of affordability allows businesses in those regions to price their transport services more competitively. In contrast, South African businesses must factor in significantly higher fuel costs when quoting clients, affecting their competitiveness not just domestically but also in the regional freight market.
The global diesel market is expected to remain volatile due to geopolitical tensions in the Middle East, supply constraints from OPEC+, and currency fluctuations. South Africa’s fuel prices are particularly sensitive to the strength of the rand against the US dollar, as well as any domestic tax policy changes.
The recent increase in the General Fuel Levy, alongside the unchanged RAF levy, has reignited public debate about the fairness of South Africa’s fuel pricing model. Transport associations and civil society groups have called for a review of how levies are applied and whether the government can provide relief to commercial sectors such as logistics.
June 2025 brings with it some mild relief in diesel prices across the continent, but the structural divide between heavily subsidised and tax-loaded economies remains firmly in place. While countries like Libya continue to enjoy ultra-low fuel prices, operators in South Africa must remain agile — optimising routes, managing fuel consumption, and lobbying for regulatory reform to stay competitive.
The monthly fuel landscape may not shift dramatically, but keeping track of these changes offers valuable insights for planning, advocacy, and sustainable growth in the transport sector.
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