South Africa Fuel Price Forecast: Petrol Relief but Diesel Pain

South Africa Fuel Price Forecast: Petrol Relief but Diesel Pain
Photo by Juan Fernandez on Unsplash

The latest fuel price forecast in South Africa brings welcome relief for petrol users, with a significant drop expected in August 2025. According to mid-month data from the Central Energy Fund (CEF), both 93 and 95 unleaded petrol could decrease by around 95 cents per litre.

This projected drop comes as a result of a stronger rand and falling international oil prices. Brent crude, which traded above $90 a barrel earlier this year, has now slipped below $86. As a result, these global shifts have eased local fuel costs, offering short-term relief for motorists.

Diesel Drivers Face Sharp Increase

However, the fuel price forecast in South Africa paints a different picture for diesel users. Diesel prices may rise by approximately R1.44 per litre in August. This increase stems from climbing global diesel prices, driven by seasonal demand in the Northern Hemisphere and tighter supply chains.

Consequently, industries that depend on diesel—such as transport, farming, and logistics—are likely to face higher operating expenses. In turn, businesses may choose to pass these increased costs on to consumers, which could result in broader price hikes.

Broader Economic Effects

Overall, the mixed fuel price forecast in South Africa highlights the country’s vulnerability to international market movements and currency volatility. While cheaper petrol may ease pressure on household budgets, rising diesel prices could contribute to inflation.

Furthermore, economists warn that the benefits of falling petrol prices might be short-lived. Higher diesel costs could cancel out these savings, especially for fuel-intensive sectors that rely on stable input costs. As a result, businesses may need to adjust their pricing strategies, affecting consumers further.

The Department of Mineral Resources and Energy is expected to confirm the final fuel prices for August at the end of July. This announcement will follow a full-month review of both local and international pricing data.

In the meantime, South Africans should stay informed. The current fuel price forecast in South Africa offers some relief at the pump—but also signals trouble ahead for diesel users.

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