Understanding South Africa’s Fuel Price Hikes – and Where to Go Despite Them

June 2025 brings another increase that will affect every road tripper’s budget | Photo: Engin Akyurt via Unsplash

South African motorists are no strangers to fluctuating fuel prices, but June 2025 brings another increase that will affect every road tripper’s budget. While rising oil prices and a weakening rand play a major role, less visible contributors like fuel levies, transport costs, and wholesale margins are quietly driving prices up too, affecting both vehicle owners and car hire customers.

A recent MyBroadband analysis shed light on how fuel costs have evolved over the past decade, breaking down the key components and highlighting the growing impact of fuel-related taxes. If you’re planning to hire a car or 4×4 for a road trip or just trying to manage your monthly transport expenses, here’s what you need to know.

What’s Behind the June 2025 Fuel Price Increase?

As part of the third 2025/2026 national budget, South Africa’s General Fuel Levy (GFL) increased by 16 cents per litre of petrol and 15 cents per litre of diesel. This change took effect on 4 June 2025.

While the GFL hasn’t been adjusted since 2021 and the RAF (Road Accident Fund) levy hasn’t changed since 2020, both have still outpaced inflation when averaged over time. According to MyBroadband’s research, these levies have grown at a compound annual rate of 7.11%, compared with an average annual inflation rate of 5.21% over the same period.

Levies have grown at a compound annual rate of 7.11% | Photo: Tasos Mansour via Unsplash

Fuel Taxes: Where Does the Money Go?

Despite being collected at the fuel pump, these taxes aren’t ring-fenced for road maintenance or transport projects:

• The General Fuel Levy is paid into the National Treasury and is South Africa’s fourth-largest income source, after personal income tax, company tax, and VAT.
• The RAF levy is intended to compensate people injured in road accidents but has been plagued by inefficiency and poor management.

Together, these two taxes now add R6.19 to every litre of unleaded 95 petrol.

Hidden Contributors to Fuel Prices

Taxes aren’t the only rising costs. Several other factors have quietly driven up the petrol price since 2016:

Wholesale margins, local transport costs, and secondary storage fees have more than doubled over the last decade. Even a new carbon tax, introduced in 2019, has quietly added 14 cents per litre.

These overlooked elements add up, especially for travellers covering long distances.

July Fuel Price Forecast for South Africa

Based on early Central Energy Fund data and assuming stable crude oil and rand conditions:

• Unleaded 95 expected to fall by 16 c/l
• Unleaded 93 expected down by 19 c/l
• Diesel prices could drop by around 24-25 c/l

If sustained, these movements will take effect at midnight, 1 July 2025. However, shifting market dynamics mean final adjustments will be confirmed in late June.

Summary of Upcoming Changes:

Note: Coastal prices are typically ~70 c lower.

If sustained, these movements will take effect at midnight, 1 July 2025 | Photo: Melissa Brown via Unsplash

Budget-Smart Road Trips from Johannesburg and Cape Town

Fuel prices may be rising, but you don’t have to cancel your next adventure. Here are six fuel-conscious road trips starting from South Africa’s major cities. Each offers good value in terms of distance and destination diversity.

Budget-Smart Road Trips From Johannesburg

Magaliesberg (Approx. 100 km one-way)

Why go:

Perfect for a quick escape from the city, the Magaliesberg region offers mountain scenery, nature reserves, hot air ballooning, and excellent hiking trails like the Rustig or Shelter Rock routes. It’s also home to local restaurants, artsy craft markets, and day spas – great for a relaxed weekend away with minimal driving.

Fuel-saving tip: Book accommodation in the same area you plan to explore and walk or cycle between attractions.

Clarens, Free State (Approx. 300 km)

Why go:

This charming village near the Lesotho border is a favourite among Gauteng travellers for its galleries, cosy cafés, and access to Golden Gate Highlands National Park. The drive itself is scenic, and once there, everything is easily walkable.

Fuel-saving tip: Stay two or three nights and enjoy slow travel by exploring the Clarens Brewery, local art studios, and hiking trails around town.

Pilanesberg National Park (Approx. 180 km)

Why go:

Set in an extinct volcanic crater, Pilanesberg is one of the most accessible Big Five game reserves from Johannesburg. It offers excellent self-drive game viewing with well-maintained roads and plenty of picnic spots. There’s no need for a 4×4 vehicle.

Fuel-saving tip: Plan your game drives strategically to reduce overlapping routes, and opt for lodges inside the park to cut down on daily driving.

Plan your game drives strategically to reduce overlapping routes | Photo: Jess Snoek via Unsplash

Budget-Smart Road Trips From Cape Town

West Coast National Park (Approx. 120 km)

Why go:

Located near Langebaan, this park is known for its coastal birdlife, flower displays (especially in August and September), and tranquil beaches. You can drive through the park in a single day, making it ideal for day trips.

Fuel-saving tip: Pack a picnic and spend the day in one of the designated braai or lookout areas to get the most value from the entry fee and fuel used.

Ceres via Bainskloof Pass (Approx. 160 km)

Why go:

The scenic Bainskloof Pass takes you through dramatic mountain landscapes to the fruit-growing valley of Ceres. It’s less touristy than other wine regions and offers access to nature reserves, hiking, and family-friendly farm experiences.

Fuel-saving tip: Combine this with a visit to nearby Tulbagh or Wolseley for a multi-day loop with minimal additional fuel usage.

Greyton (Approx. 150 km)

Why go:

This laid-back Overberg village is known for its country atmosphere, excellent hiking (such as the Boesmanskloof trail), farmers’ markets, and organic eateries. The town centre is walkable and bicycle-friendly, ideal for car-free exploring once you’re there.

Fuel-saving tip: Book self-catering accommodation and enjoy the outdoors on foot – no need to use your vehicle once you arrive.

Whether you’re taking the N1 north or cruising along the Garden Route, fuel-savvy road trips are still possible | Photo: Unsplash

Fuel price hikes are part of a broader economic story in South Africa – where taxes, transport logistics, and currency shifts all combine at the pump. While this adds pressure to motorists and car hire customers, smart planning and local travel can keep costs manageable.

Whether you’re taking the N1 north or cruising along the Garden Route, fuel-savvy road trips are still possible with vehicle hire from Drive South Africa. With a bit of foresight, your next adventure can be both budget-friendly and unforgettable! If you’re ready to book a fuel-efficient vehicle with us, simply use the handy booking tool at the top of the page.