Starting from Wednesday, July 1, 2026, drivers in South Africa will experience a notable decrease in fuel prices at the pump. This change follows an announcement from the Department of Petroleum and Mineral Resources of a substantial reduction in both petrol and diesel costs, despite the conclusion of a temporary government support for fuel levies.
The downward adjustment in prices is attributed to a sharp decline in international oil prices coupled with the South African rand maintaining stability against the US dollar. By the end of June, Brent crude oil prices had dropped to approximately $75 per barrel. This decrease was influenced by reduced geopolitical tensions between the United States and Iran, which alleviated fears of potential disruptions in the Strait of Hormuz, a crucial shipping lane for global oil supply.
Calculations for the new fuel prices indicate an over-recovery of about R3 per litre for petrol and nearly R5 per litre for diesel. However, South African motorists will not reap the full benefits of these recoveries due to the expiration of the temporary fuel levy relief. As a result, from July 1, the reimposition of the fuel levy will add R1.50 per litre to petrol prices and R1.97 per litre to diesel prices. Nonetheless, thanks to the favorable international oil prices and the stable exchange rate, fuel costs are set to decrease significantly.
For July 2026, the updated inland prices will see Petrol 93 drop from R27.95 to R25.94 per litre and Petrol 95 from R28.06 to R26.10 per litre. Diesel with 0.05% sulfur content will decrease from R27.92 to R24.78 per litre, and diesel with 0.005% sulfur will fall from R29.26 to R25.67 per litre. Illuminating paraffin is also set to decrease from R22.47 to R17.24 per litre. Coastal regions will witness similar reductions, with Petrol 93 moving from R27.16 to R25.15 per litre, and Petrol 95 from R27.19 to R25.23 per litre. Diesel 0.05% will see a drop from R27.05 to R23.91 per litre, and Diesel 0.005% from R28.00 to R24.41 per litre. Illuminating paraffin will decrease from R21.42 to R16.19 per litre.
The key drivers of these price changes are the international petroleum prices and the rand-to-dollar exchange rate. With Brent crude trading around $72.26 per barrel and the rand valued at roughly R16.46 per US dollar, the reduced fuel costs are expected to ease financial pressures for both households and businesses by lowering transportation expenses and mitigating inflation. However, the future of fuel prices remains uncertain, subject to fluctuations in geopolitical scenarios, particularly those affecting the Middle East and global oil supplies.