Fuel Price Relief as Petrol and Diesel Drop Significantly from Wednesday

South African motorists and households can look forward to notable fuel price relief starting this Wednesday, following the announcement by the Department of Mineral and Petroleum Resources (DMPR) of decreases across all fuel grades, including petrol, diesel, illuminating paraffin, and LPGas. The price adjustments reflect favourable movements in global oil prices and a slightly stronger Rand during the review period.

This is welcome news for consumers who have faced ongoing financial pressure due to inflation, high interest rates, and previous fuel price hikes that impacted both transport and food costs.

Fuel Price Adjustments: What to Expect

As of Wednesday, 4 September 2025, the following price adjustments will take effect:

• Petrol 93 (ULP & LRP): ↓ 4 cents per litre

• Petrol 95 (ULP & LRP): ↓ 4 cents per litre

• Diesel (0.05% sulphur): ↓ 56 cents per litre

• Diesel (0.005% sulphur): ↓ 57 cents per litre

• Illuminating Paraffin (wholesale): ↓ 37 cents per litre

• Retail price for Illuminating Paraffin: ↓ 49 cents per litre

• LPGas (national max retail price): ↓ R1.32 per kg

• LPGas (Western Cape): ↓ R1.51 per kg

These adjustments will bring the Gauteng pump price for Petrol 95 ULP & LRP to R21.55/litre, while the coastal price drops to R20.72/litre.

What’s Driving the Decrease?

The main factors influencing this month’s price drops include:

📉 Lower Brent Crude Prices

The average Brent Crude oil price fell from $69.06 to $67.01 per barrel, driven by:

• Increased production from both OPEC+ and non-OPEC producers

• A slower global economic growth outlook, reducing energy demand

• Continued uncertainty over global trade tariffs

These elements contributed to lower international petroleum product prices, which in turn reduced the Basic Fuel Price (BFP) components across the board:

• Petrol BFP: ↓ 1.88 cents/litre

• Diesel BFP: ↓ 54.35 cents/litre

• Illuminating Paraffin BFP: ↓ 35.54 cents/litre

The prices of propane and butane, essential components in LPGas, also saw a decrease, further supporting price relief for cooking and heating fuels.

💱 Slight Rand Strengthening

The Rand gained modestly against the US dollar during the review period, softening fuel prices by an estimated 2 cents per litre across all products. A stronger local currency helps reduce the cost of imported fuel, a critical factor in South Africa's pricing model.

Impact on Consumers and Industry

The reductions are expected to have positive ripple effects across various sectors:

• Commuters will pay less for fuel, easing household budgets.

• Transport and logistics companies may benefit from lower operating costs, possibly reducing pressure on goods inflation.

• Small businesses, especially those in rural areas reliant on diesel and paraffin, will feel some relief.

For many South Africans still battling high living costs, these decreases could help slightly improve purchasing power during a period of economic strain.

Outlook Going Forward

While the current fuel price reductions are a step in the right direction, analysts caution that market volatility remains high. Future prices will depend on:

• The geopolitical stability of oil-producing regions

• Changes in global economic growth forecasts

• South Africa’s fiscal and monetary policy environment

• Exchange rate fluctuations

The DMPR will continue to monitor international trends and make monthly adjustments in line with the country’s fuel pricing mechanism, which is based on global benchmarks and domestic cost recovery models.

Final Thoughts

This round of fuel price cuts is a welcome respite for consumers, offering short-term savings and reducing inflationary pressure. Whether it marks the beginning of a sustained downward trend will depend on how global oil markets and local economic conditions evolve in the months ahead.