South African motorists will experience significant relief at the pump starting Wednesday, July 1, 2026, as the Department of Petroleum and Mineral Resources announced notable decreases in petrol and diesel prices. This development comes even as the government’s temporary fuel levy relief ends. The price cuts are largely attributed to a sharp decline in international oil prices, along with a stable South African rand against the US dollar, leading to substantial fuel price over-recoveries.
Brent crude oil prices have dropped to approximately $75 per barrel by the close of June, thanks to reduced tensions between the United States and Iran that have alleviated fears of disruptions in the Strait of Hormuz. These conditions have resulted in an over-recovery of about R3 per litre for petrol and nearly R5 per litre for diesel. However, motorists will not feel the full effect of these recoveries due to the expiration of the temporary fuel levy relief programme.
With the reinstatement of the fuel levy, R1.50 per litre will be added to petrol prices and R1.97 per litre to diesel prices starting July 1. Despite these added costs, the overall fuel prices will still decrease significantly, driven by the lowered 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. Coastal prices also reflect similar reductions: 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 adjustments in fuel prices are predominantly influenced by international petroleum price trends and the rand-to-dollar exchange rate, with Brent crude trading around $72.26 per barrel and the rand valued at approximately R16.46 per US dollar at the time of reporting. These lower fuel costs are expected to benefit households and businesses by reducing transportation expenses and alleviating inflation pressures. However, future fuel prices could still be susceptible to geopolitical changes, particularly those involving tensions in the Middle East and global oil supply dynamics.