Starting Wednesday, July 1, 2026, South African drivers will experience a significant drop in fuel prices at the pump. This comes as the Department of Petroleum and Mineral Resources announces considerable reductions in petrol and diesel costs. Despite the conclusion of a government scheme offering temporary fuel levy relief, motorists will benefit from these lower prices.
The decline in international oil prices and the stability of the South African rand against the US dollar have resulted in substantial fuel price over-recoveries. The easing of tensions between the United States and Iran has led to a decrease in Brent crude oil prices, which settled at around $75 per barrel by the end of June, alleviating fears of disruptions in the Strait of Hormuz. As a result, fuel price calculations indicated an over-recovery of about R3 per litre for petrol and nearly R5 per litre for diesel. However, the full benefit will not be passed on to consumers due to the expiration of the temporary fuel levy relief program.
With the reinstatement of the fuel levy from July 1, an additional R1.50 per litre is added to petrol prices and R1.97 per litre to diesel prices. Despite these added costs, the overall fuel prices will experience a significant decrease, driven by the lower global oil prices and favorable exchange-rate conditions. New fuel prices for July 2026 are set, with inland prices for Petrol 93 dropping from R27.95 to R25.94 per litre and Diesel 0.05% decreasing from R27.92 to R24.78 per litre. Coastal regions will see similar reductions, with Petrol 93 falling from R27.16 to R25.15 per litre and Diesel 0.05% reducing from R27.05 to R23.91 per litre.
The fluctuation in fuel costs is primarily influenced by international petroleum prices and the exchange rate between the rand and the dollar. At the time of the report, Brent crude was trading near $72.26 per barrel, while the rand was valued at approximately R16.46 per US dollar. These lower fuel costs are anticipated to provide relief to households and businesses by decreasing transport expenses and helping to alleviate inflation pressures. However, the future stability of fuel prices remains susceptible to geopolitical developments, particularly those affecting tensions in the Middle East and global oil supply dynamics.