Starting Wednesday, July 1, 2026, drivers across South Africa can expect to see significant reductions in fuel prices, as announced by the Department of Petroleum and Mineral Resources. Despite the conclusion of the government’s temporary fuel levy support, both petrol and diesel are set for a substantial price decrease thanks to favorable international market conditions.
The driving factors behind this welcome change include a steep drop in global oil prices and a stable South African rand against the US dollar. By the end of June, Brent crude oil prices had fallen to approximately $75 per barrel. This decrease was largely attributed to easing tensions between the United States and Iran, which helped alleviate fears of potential disruptions in the vital Strait of Hormuz. As a result, South Africa witnessed petrol price over-recoveries of about R3 per litre, with diesel showing nearly R5 per litre in over-recoveries.
Despite these positive developments, the expiration of the temporary fuel levy relief means that motorists won’t benefit from the full extent of the price reductions. As of July 1, the reinstatement of the fuel levy will add R1.50 per litre to petrol and R1.97 per litre to diesel prices. However, the overall fuel costs will still decline markedly due to the reduced global oil prices and improved exchange rates.
For July 2026, the new fuel prices in South Africa are as follows: Inland prices for Petrol 93 will drop from R27.95 to R25.94 per litre, Petrol 95 from R28.06 to R26.10, Diesel 0.05% from R27.92 to R24.78, Diesel 0.005% from R29.26 to R25.67, and Illuminating Paraffin from R22.47 to R17.24. In coastal regions, Petrol 93 will decrease from R27.16 to R25.15 per litre, Petrol 95 from R27.19 to R25.23, Diesel 0.05% from R27.05 to R23.91, Diesel 0.005% from R28.00 to R24.41, and Illuminating Paraffin from R21.42 to R16.19.
The fluctuation in fuel prices is primarily affected by international petroleum costs and the rand-to-dollar exchange rate. At the time of reporting, Brent crude was trading around $72.26 per barrel, with the rand valued at approximately R16.46 per US dollar. The reduction in fuel costs is anticipated to benefit households and businesses by lowering transportation expenses and easing inflationary pressures. Nevertheless, future fuel prices remain susceptible to geopolitical developments, particularly in relation to Middle Eastern tensions and shifts in global oil supply.