Starting Wednesday, July 1, 2026, South African drivers will experience a notable decrease in fuel prices, as confirmed by the Department of Petroleum and Mineral Resources (DMPR). This comes despite the conclusion of the government’s temporary fuel levy support. A combination of plummeting international oil prices and a stable South African rand against the US dollar has led to substantial fuel price over-recoveries. The easing of tensions between the United States and Iran has helped reduce concerns about potential disruptions in the Strait of Hormuz, driving Brent crude oil prices down to approximately $75 per barrel by the end of June.
Analysis of fuel price calculations indicates over-recoveries of roughly R3 per litre for petrol and nearly R5 per litre for diesel. However, the expiration of the temporary fuel levy relief means motorists will not fully benefit from these over-recoveries. From the start of July, the reinstatement of the fuel levy will add R1.50 per litre to petrol prices and R1.97 per litre to diesel prices. Nevertheless, the impact of lower global oil prices and improved exchange-rate conditions will result in a significant decrease in overall fuel costs.
The new fuel prices for July 2026 reveal considerable reductions. Inland price adjustments show that 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 per litre. Coastal areas will see Petrol 93 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 per litre.
The movement in fuel prices is primarily driven by the fluctuations in international petroleum prices and the rand-to-dollar exchange rate. At the time of reporting, 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 curbing transport expenses and reducing inflation pressures. However, the future trajectory of fuel prices could be affected by geopolitical developments, particularly changes in Middle East tensions and global oil supply dynamics.