Starting Wednesday, July 1, 2026, South African drivers will experience a substantial drop in fuel prices, according to the Department of Petroleum and Mineral Resources. This development comes despite the cessation of the government’s temporary fuel levy support, offering motorists significant financial relief at the pumps.
The planned reductions are attributed to a sharp decline in international oil prices coupled with the stability of the South African rand against the US dollar. These factors have resulted in notable over-recoveries in fuel prices. By the end of June, Brent crude oil had decreased to approximately $75 per barrel, following a reduction in geopolitical tensions between the United States and Iran, which alleviated fears of potential disruptions in the Strait of Hormuz.
Petrol prices have seen an over-recovery of roughly R3 per litre, while diesel has recorded nearly R5 per litre. Despite these recoveries, the full benefit is not being passed on to motorists due to the expiration of the temporary fuel levy relief. As the fuel levy returns, it will add R1.50 to petrol and R1.97 to diesel per litre. Nevertheless, the drop in global oil prices and favorable exchange rates are expected to lead to a significant decrease in fuel costs.
As a result, inland petrol prices are set to decrease from R27.95 to R25.94 per litre for Petrol 93 and from R28.06 to R26.10 per litre for Petrol 95. Diesel 0.05% will drop from R27.92 to R24.78 per litre, and Diesel 0.005% from R29.26 to R25.67 per litre. Similarly, illuminating paraffin will see a reduction from R22.47 to R17.24 per litre. At the coast, Petrol 93 will decline from R27.16 to R25.15 per litre, while Petrol 95 will move from R27.19 to R25.23 per litre. Diesel 0.05% is set to fall from R27.05 to R23.91 per litre, and Diesel 0.005% from R28.00 to R24.41 per litre, with illuminating paraffin dropping from R21.42 to R16.19 per litre.
These changes are primarily driven by fluctuations in international petroleum prices and the rand-to-dollar exchange rate. Brent crude is currently trading near $72.26 per barrel, while the rand is around R16.46 per US dollar. This decrease in fuel costs is expected to benefit both households and businesses by lowering transportation expenses and easing inflationary pressures. However, the future stability of fuel prices remains uncertain, as they are subject to shifts in geopolitical dynamics, particularly those involving the Middle East and the global oil supply.