Cape Town – South Africa could see significant fuel price relief in April, with petrol prices potentially dropping by up to 98 cents per litre, and diesel decreasing by around 86 to 87 cents.
This is according to the latest data from the Central Energy Fund (CEF).
The development comes after a recent small price change in March, where petrol decreased by seven cents, and diesel rose by 32 cents.
The anticipated decrease in April is due to lower international oil prices, which fell below $70 per barrel for the first time since September 2024.
However, this outlook comes with a caveat as the situation could still change. If current trends continue, petrol prices could drop by over R1, bringing the price of 95 Unleaded petrol to around R20.55 at the coast and R22.34 inland.
The decline is partly driven by concerns over a global economic slowdown and US tariffs on major trading partners, which have dampened energy demand.
“These protectionist measures have raised fears of reduced energy demand, compounded by market uncertainty and potential recession risks,” IOL quoted Milad Azar, Market Analyst at XTB as saying.
Meanwhile, Finance Minister Enoch Godongwana announced during his budhet speech on Wednesday that the general fuel levy and Road Accident Fund (RAF) levy will remain unchanged for another year, providing relief to South African motorists.
This decision, part of the revised 2025 budget, is expected to save motorists around R4 billion and help offset the impact of a planned VAT increase, Businesstech reported.
Contrary to expectations that Treasury would raise fuel levies to cover revenue shortfalls, Godongwana has opted to keep them frozen, a policy in place since April 2022.
However, the carbon fuel levy will increase by 3 cents per litre from April 2025, in line with South Africa’s carbon tax regulations.
“The carbon tax plays an integral role in South Africa’s climate change mitigation efforts. It increased from R190 to R236 per tonne of carbon dioxide equivalent from 1 January 2025,” the report quoted treasury as saying.
Follow African Insider on Facebook, Twitter and Instagram
