Petrol prices in South Africa set to rise despite lower international oil costs

DESPITE recent decreases in international oil prices, South African motorists should brace themselves for a petrol price increase, which is set to take effect on Wednesday, 2 July 2025.

- YOGASHEN PILLAY

Experts on Monday attributed this rise to a combination of factors, including fluctuations in Brent crude oil prices and the exchange rate, which continue to impact local fuel costs.

Economics professor Waldo Krugell, from North-West University, noted that data from last Thursday indicates an expected increase of around 50 cents per litre for petrol and approximately 80 cents for diesel.

"The reason is the higher Brent crude oil price in the middle of the month, which has since decreased. The slightly stronger rand, compared to last month, helps to keep the increase smaller than it would be," Krugell said.

"It is unfortunate for consumers, but unlikely to have much broader macro impact."

Krugell added that our bigger worry for the exchange rate is the possible return of the "reciprocal" tariffs next week.

Dr Eliphas Ndou, an economist and author at Unisa's Department of Economics, echoed these sentiments, anticipating further implications for next month's fuel prices.