In spite of setbacks recorded in 2025, both in local and global markets, motorists have ended the year only slightly worse off when it comes to fuel prices. The year… The post Stronger Rand, Lower Oil, but Higher Fuel Costs for Motorists appeared first on Radarr Africa.
In spite of setbacks recorded in 2025, both in local and global markets, motorists have ended the year only slightly worse off when it comes to fuel prices. The year was filled with market drama, geopolitical tension, and policy decisions that affected energy costs, but the final outcome shows a mixed picture for petrol users and a tougher situation for diesel consumers.
Across the year under review, from December 2024 to December 2025, fuel prices moved up and down several times, reacting to global oil prices, exchange rate movements, and government policies. While international oil prices fell sharply and the local currency strengthened against the US dollar, these gains were partly wiped out by government intervention through higher fuel levies.
For petrol users, the impact depended largely on the type of fuel they use. Motorists who rely on the cheaper 93 octane petrol ended the year paying slightly more. The price of Petrol 93 moved from R21.15 per litre in December 2024 to R21.26 per litre in December 2025, representing an increase of 11 cents. Although this increase may look small on paper, it still added to the daily cost of transportation for many households.
On the other hand, motorists using 95 octane petrol saw a small relief. The price of Petrol 95 dropped by 6 cents over the same period, declining from R21.47 per litre to R21.41 per litre by December 2025. This modest reduction offered some comfort to drivers of vehicles that require higher-grade petrol, even though the savings were not significant.
The real challenge in 2025 was diesel pricing. Diesel prices are usually more sensitive to global supply disruptions, geopolitical tensions, and industrial demand, and the year presented all these risk factors. Drivers using diesel with 0.5% sulphur content experienced an increase of 57 cents per litre, as prices rose from R19.21 in December 2024 to R19.78 by the end of 2025.
Diesel with a lower sulphur content of 0.05% saw an even sharper rise. Prices jumped by 69 cents per litre over the 12-month period, moving from R19.33 to R20.02 per litre. This category recorded the biggest increase among all fuel types, adding pressure to commercial transport operators, logistics companies, farmers, and businesses that rely heavily on diesel-powered machinery.
In practical terms, the price changes translated into higher costs at the pump. Filling a 50-litre tank with Petrol 93 now costs about R5.50 more than it did a year ago. Petrol 95 users save roughly R3.00 on the same volume, while diesel users pay between R28.50 and R34.50 more, depending on the sulphur content of the diesel they buy.
Throughout 2025, fuel prices were far from stable. Monthly adjustments showed sharp increases and steep declines at different points in the year. Early in the year, prices jumped significantly, especially in February, before easing in the following months. Mid-year increases in July and December again pushed prices higher, particularly for diesel.
The main drivers of these changes were global oil prices and movements in the rand-dollar exchange rate. At the start of 2025, global oil prices hovered around $80 per barrel, influenced by geopolitical tensions, seasonal demand, and tight supply levels. However, as the year progressed, global supply began to exceed demand.
This shift was partly linked to political developments in the United States, where President Donald Trump’s administration returned to office and launched a new wave of trade tariffs. The tariff war slowed economic activity in major oil-consuming countries, reducing demand for crude oil. At the same time, oil-producing countries under the OPEC+ group increased output, adding more supply to the market.
These factors combined to push oil prices down sharply, with prices falling below $60 per barrel at some point during the year. On average, oil prices traded around $68 per barrel in 2025, with recent prices staying at the lower end of that range. Market analysts have warned that this weakness may continue, with excess supply expected to persist into 2026 and beyond.
The exchange rate also played a key role. The rand started the year on a weak note, trading close to R18.99 to the US dollar in January. However, as the US dollar weakened due to trade tensions and policy uncertainty, the rand gained strength over time. This appreciation helped to cushion the impact of fuel imports.
Still, the rand faced periods of heavy pressure during the year. These included diplomatic tensions between South Africa and the United States, domestic political uncertainty linked to the 2025 national budget, and instability within the Government of National Unity, involving disagreements between the African National Congress and the Democratic Alliance. During these periods, the rand briefly touched record lows before recovering later in the year.
Despite lower oil prices and a stronger rand, motorists did not fully benefit. This was largely due to the government’s decision to increase the general fuel levy by 15 cents per litre in the May 2025 budget. This policy move ensured that, overall, fuel prices remained higher than they would have been without the levy hike.
In the end, 2025 closed with petrol prices largely flat and diesel prices significantly higher, leaving motorists and businesses to manage the impact as they head into a new year.
The post Stronger Rand, Lower Oil, but Higher Fuel Costs for Motorists appeared first on Radarr Africa.
