Published on: Coops.Africa | 5 August 2025

Fuel prices have changed again – and this time, it’s a mixed bag. Whether you're a farming co-op, transport SACCO, or township delivery service, these changes will affect how much you pay at the pump and for other fuels. Here's what happened, and what it means in simple terms.

⛽ Petrol Prices Drop Slightly

• Both 93 & 95 Petrol prices went down by 28 cents per litre.

• This is good news for anyone driving petrol vehicles — from bakkies to sedans. Cooperatives that use petrol vehicles can expect a small saving on transport costs.

🛢️ Diesel Prices Increase

• Diesel with 0.05% sulphur is up by 65 cents per litre.

• Diesel with 0.005% sulphur is up by 63 cents per litre.

This hits co-ops harder — especially in agriculture, logistics, and informal transport. Diesel is the lifeblood for tractors, delivery vans, and minibus taxis. So, expect operating costs to go up this month.

🕯️ Illuminating Paraffin: Up Again

• Wholesale price increased by 32 cents per litre

• The official maximum retail price (SMNRP) increased by 43 cents per litre

Many rural and township households still rely on paraffin for cooking and heating. This increase hurts low-income communities the most — cooperatives working in humanitarian aid or household energy may need to adjust their outreach or pricing.

🔥 LPGas (Cooking Gas) Relief

• The maximum price of LPGas went down by 69 cents per kg

This is great news for those using gas for cooking or small business operations like catering. LPG is now more affordable, which may also support cooperatives promoting clean energy options.

💸 Why the Price Changes?

There are a few key reasons:

1. Global Oil Prices: Diesel and paraffin prices went up globally, so local prices followed.

2. Exchange Rate: The Rand got slightly stronger compared to the US Dollar – that helped slow down the increase in prices. But not enough to stop diesel and paraffin going up.

3. No Slate Levy Applied: This is a levy that sometimes gets added if the government has lost too much money subsidising fuel prices. Fortunately, it’s still set at zero — no extra tax this time.

🔍 What Is the "Slate Levy"?

Think of it like a balancing account. When fuel sellers are underpaid or overpaid because of big shifts in oil prices, the government uses the "Slate Account" to keep things fair. If the losses are more than R500 million, a Slate Levy is added to fuel. We're under that threshold — for now.

👀 What Should Co-ops Do?

Here’s what we recommend:

🚛 For Farming & Transport Co-ops:

• Recalculate your cost of fuel for this month — diesel price increases can affect your entire supply chain.

• Consider fuel-saving practices like route planning and shared trips.

🏘️ For Housing & Community Co-ops:

• Expect higher paraffin prices, so budget wisely or explore LPGas alternatives where possible.

• Educate members on safe and affordable energy options.

🧪 For Clean Energy Co-ops:

• This LPGas price drop is an opportunity to promote gas as a cooking fuel.

• Cooperatives promoting energy solutions can seize this moment to scale LPG uptake.

🧮 Quick Fuel Price Summary – Effective 6 August 2025

📢 Final Word

Fuel prices affect everyone — but co-ops can stay ahead by planning around these changes. The increase in diesel and paraffin prices is tough, but the petrol and LPG drop offers a small cushion. Use this time to explore cooperative-based energy solutions, fuel sharing, and savings strategies for the months ahead.

Let’s keep working together — powering co-ops, fuelling communities.