We’re pleased to share encouraging news this month—fuel prices across South Africa have decreased, offering welcome relief for motorists, transport operators, and businesses alike. At Virgin Fuels, we know how significantly fuel costs can impact your daily operations and budgets, and we’re here to help you make the most of this downward trend.
As announced by the Department of Mineral and Petroleum Resources, the decrease will take effect from Wednesday, 7 May 2025. Both grades of petrol—93 and 95—will drop by 22 cents per litre. Diesel prices are also coming down, with 500 ppm and 50 ppm decreasing by 42 and 41 cents respectively. Illuminating paraffin will be more affordable too, with a drop of up to 41 cents per litre. These reductions are mainly due to a decline in Brent Crude oil prices, falling from $71.04 to $66.40 during the review period, influenced by global oversupply and economic slowdown concerns.
At Virgin Fuels, our mission is to provide competitively priced, high-quality fuel backed by reliable service and industry expertise. These lower prices translate into real savings for our customers, and we remain committed to helping you maximise every litre.
What’s Driving the Pump Price? Unpacking the Economic Forces Behind SA’s Fuel Costs
Fuel prices in South Africa rise and fall more than just with supply and demand. Understanding the forces behind these shifts helps businesses and individuals plan smarter and manage costs more effectively. Here’s a quick breakdown of what’s moving the market:
Global Influences:
• Brent Crude Oil Price: South Africa imports crude oil; global price hikes directly affect local pump prices.
• OPEC+ Production Cuts: When oil-producing countries reduce supply, prices tend to rise.
• Geopolitical Instability: Conflicts in oil-rich regions (like the Middle East or Russia/Ukraine) cause market uncertainty and price spikes.
Local Pressures:
• Rand vs. US Dollar Exchange Rate: Since oil is priced in USD, a weaker Rand means higher costs—even if global prices stay the same.
• Government Levies & Taxes: The fuel levy and Road Accident Fund levy account for a significant portion of the pump price.
• Import & Logistics Costs: Port delays, strikes, and transport costs within SA also impact final pricing.
Value for You:
At Virgin Fuels, we monitor economic trends to help customers stay informed and plan proactively. We offer competitive pricing, transparent invoicing, and volume discounts—giving you control in uncertain times.
South Africa’s diverse climate—from the icy Highveld winters to the scorching Lowveld summers—can significantly impact diesel fuel performance. As we transition into cooler months, understanding how temperature affects your fuel quality is critical to keeping your operations smooth and your vehicles protected.
Did you know that diesel can start to gel or thicken when temperatures drop below 0°C? This happens because paraffin wax crystals begin to form in the fuel, potentially clogging filters and lines, leading to poor engine performance or even a complete shutdown. This is a real concern in parts of the country like the Free State, Eastern Cape highlands, or northern Drakensberg where winter temperatures regularly dip below freezing.
In summer, heat can accelerate microbial growth in fuel tanks, especially if water contamination is present. This microbial sludge can damage injectors and corrode tanks if not managed proactively.
At Virgin Fuels, we ensure all our diesel meets SANS standards and is tested for seasonal suitability. For winter, consider switching to winter-grade diesel or using anti-gel fuel additives that keep your fleet running even when the mercury drops. Regular tank maintenance and water draining is also vital throughout the year.
With Virgin Fuels, you’re not just buying fuel—you’re investing in reliable performance across every season.
In a significant development for South Africa’s energy sector, the Abu Dhabi National Oil Company (Adnoc) has been shortlisted to acquire Shell’s downstream assets in the country, valued at approximately $1 billion. This move is part of a larger trend of Middle Eastern investment in Africa’s energy industry. Over the past few weeks, companies from the UAE have expressed interest in various energy assets across the continent, demonstrating a growing appetite for diversification beyond their traditional oil and gas sectors.
This shift towards African investments is further highlighted by a rise in bilateral trade between Africa and the UAE, which increased by 38% through 2023. For businesses in South Africa, this influx of capital could mean more stable energy resources and potential for growth in renewable energy projects. At Virgin Fuels, we’re closely monitoring these changes to ensure our customers continue to benefit from a reliable and secure fuel supply.
Sasol, one of South Africa’s leading energy and chemical companies, is facing a steep decline in its share price, reflecting growing operational struggles and adverse market conditions. The company’s share value recently dropped to R59.45 — a dramatic fall from R170.96 just a year ago. This sharp downturn highlights the severity of the challenges confronting the company on multiple fronts.
At the core of Sasol’s troubles are significant production difficulties. The company is contending with poor coal extraction rates and a reduced supply of gas from Mozambique, both of which have negatively impacted its operational output. At the same time, production costs at its Secunda facility continue to rise, placing further strain on profitability. Externally, Sasol is also grappling with an oversupply of chemicals on the global market and a downturn in oil prices, both of which have diminished revenue streams. Geopolitical tensions and international trade tariffs are adding to the uncertainty, undermining investor confidence and destabilizing market conditions.
For South African consumers, these challenges are more than just corporate headlines — they have real-world consequences. Sasol’s difficulties may contribute to greater fuel price volatility, particularly as global oil markets react to fluctuations in supply and demand. If the company’s operations remain unstable, consumers could see more frequent and unpredictable changes in the cost of fuel, affecting everything from household budgets to business logistics.
Staying informed about these developments is increasingly important. As Sasol navigates these headwinds, South African consumers and businesses can benefit from understanding how such factors influence fuel pricing. By anticipating potential changes, they can take proactive steps to manage costs and adapt more effectively in an unpredictable economic environment.