South Africa’s monthly fuel price for April 2025 has been adjusted downwards, driven by a combination of rand appreciation and lower international Brent crude oil prices. The rand strengthened by 1.1% to R18.30 per US dollar, while international crude oil prices fell sharply by 5% month-on-month to US$71.04 per barrel following the Trump tariff onslaught that unsettled markets, as well as an improved global supply outlook.
The latest announcement from the Department of Mineral and Petroleum Resources indicates that petrol prices will decrease by 58 cents and 92 cents per litre for the 93 and 95 grades, respectively, in April 2025. This brings prices down from February levels of R21.51 per litre and R21.62 per litre. Similarly, diesel prices for 0.05% and 0.005% sulphur content will decrease by 84 cents and 86 cents per litre, respectively, to R19.32 per litre and R19.34 per litre.
The bearish outlook for international crude oil prices—driven by US tariffs, sluggish economic growth in China and India, and increased output by OPEC+—suggests the possibility of further fuel price reductions in the coming months. This is positive news for the agriculture sector, as lower fuel prices reduce transportation costs for both production inputs and the distribution of produce to local and international markets, ultimately improving farmer profit margins.
The agricultural sector is gradually recovering from the devastating 2024 El Niño-induced drought, which led to a 22% year-on-year decline in summer crop harvests. However, the production outlook remains strong, supported by excellent seasonal rains since the beginning of 2025. Additionally, lower fuel costs will help keep food inflation on a downward trend, following four consecutive months below 2% year-on-year, including a record low of 1.9% year-on-year in February—the lowest since January 2011.
Koketso Mano, Senior Economist at FNB. Photo supplied