South African drivers will soon benefit from notable reductions in fuel prices starting Wednesday, 1 July 2026. This development follows the Department of Petroleum and Mineral Resources’ announcement of significant price cuts for petrol and diesel, despite the cessation of the government’s temporary fuel levy support. The price drops are attributed to the sharp decline in international oil prices and the stability of the South African rand against the US dollar, leading to substantial fuel price over-recoveries.
The global decrease in Brent crude oil prices to approximately $75 per barrel by the end of June, amidst easing tensions between the United States and Iran, has helped alleviate concerns over potential disruptions in the Strait of Hormuz. As a result, petrol saw an over-recovery of about R3 per litre, while diesel’s over-recovery was nearly R5 per litre. However, due to the expiration of the temporary fuel levy relief programme, motorists won’t enjoy the full extent of these recoveries.
With the reintroduction of the fuel levy, an additional cost of R1.50 per litre will be added to petrol prices and R1.97 per litre to diesel prices starting July 1. Nonetheless, even with these added charges, consumers will experience a significant drop in fuel prices thanks to the lower global oil prices and favorable exchange-rate conditions.
For July 2026, the new inland fuel prices are set as follows: Petrol 93 will decrease from R27.95 to R25.94 per litre, Petrol 95 from R28.06 to R26.10 per litre, Diesel 0.05% from R27.92 to R24.78 per litre, Diesel 0.005% from R29.26 to R25.67 per litre, and Illuminating Paraffin from R22.47 to R17.24 per litre. At coastal regions, Petrol 93 will drop from R27.16 to R25.15 per litre, Petrol 95 from R27.19 to R25.23 per litre, Diesel 0.05% from R27.05 to R23.91 per litre, Diesel 0.005% from R28.00 to R24.41 per litre, and Illuminating Paraffin from R21.42 to R16.19 per litre.
The movement in fuel prices is primarily influenced by international petroleum prices and the rand-to-dollar exchange rate. At the time of reporting, Brent crude was trading near $72.26 per barrel, with the rand at approximately R16.46 per US dollar. These lower fuel costs are anticipated to provide support to households and businesses by reducing transportation expenses and alleviating inflation pressures. However, future fuel prices remain susceptible to geopolitical developments, particularly changes in Middle East tensions and global oil supply.