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. This development follows a substantial drop in international oil prices and a stable exchange rate between the South African rand and the US dollar, which have led to considerable fuel price over-recoveries. The decline in oil prices, with Brent crude falling to approximately $75 a barrel by the end of June, was spurred by reduced geopolitical tensions between the United States and Iran, alleviating fears of disruptions in the vital Strait of Hormuz.
Despite the positive news, motorists will not fully enjoy the potential savings due to the expiration of the temporary fuel levy relief program. The return of this levy will increase petrol prices by R1.50 per litre and diesel prices by R1.97 per litre. Nonetheless, the overall cost of fuel is set to decrease significantly thanks to the lower global oil prices and favorable exchange rate conditions.
For July 2026, the new inland fuel prices are as follows: Petrol 93 will drop 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. Meanwhile, coastal regions will see Petrol 93 decrease 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 fluctuation in fuel prices is primarily driven by international petroleum prices and the rand-to-dollar exchange rate. At the time of publication, Brent crude was trading around $72.26 per barrel, with the rand valued at approximately R16.46 against the US dollar. These reduced fuel costs are anticipated to provide relief to households and businesses by lowering transportation expenses and easing inflationary pressures. However, future fuel prices remain susceptible to changes in geopolitical dynamics, particularly those involving the Middle East and global oil supply.