Beginning July 1, 2026, South African drivers can look forward to substantial reductions in fuel costs, as confirmed by the Department of Petroleum and Mineral Resources (DMPR). Despite the cessation of the temporary government fuel levy support, petrol and diesel prices are set to drop significantly. The decrease follows a notable decline in international oil prices and a stable South African rand against the US dollar, leading to considerable fuel price over-recoveries.
The recent dip in Brent crude oil prices, which settled around $75 per barrel by the end of June, was influenced by reduced tensions between the United States and Iran, alleviating fears of disruptions in the Strait of Hormuz. As a result, petrol exhibited an over-recovery of approximately R3 per litre, while diesel’s over-recovery was nearly R5 per litre. However, the full benefit will not be passed on to consumers due to the expiration of the temporary fuel levy relief program.
Effective from July, the reinstated fuel levy will add R1.50 per litre to petrol and R1.97 per litre to diesel. Nevertheless, lower global oil prices and improved exchange-rate conditions will lead to a significant drop in fuel prices. Inland, petrol 93 will decrease from R27.95 to R25.94 per litre, and petrol 95 from R28.06 to R26.10 per litre. Diesel 0.05% will see a reduction from R27.92 to R24.78 per litre, and diesel 0.005% will go from R29.26 to R25.67 per litre. Illuminating paraffin is expected to fall from R22.47 to R17.24 per litre.
Coastal regions will experience similar declines. Petrol 93 will drop from R27.16 to R25.15 per litre, and petrol 95 from R27.19 to R25.23 per litre. Diesel 0.05% will be reduced from R27.05 to R23.91 per litre, and diesel 0.005% from R28.00 to R24.41 per litre. Illuminating paraffin will decrease from R21.42 to R16.19 per litre. These changes are primarily driven by global petroleum price trends and the rand-to-dollar exchange rate, with Brent crude recently trading near $72.26 per barrel and the rand at approximately R16.46 per US dollar.
The reduced fuel prices are poised to benefit households and businesses by cutting transportation costs and easing inflationary pressures. However, it’s important to note that future fuel prices remain susceptible to geopolitical developments, particularly shifts in Middle East tensions and changes in global oil supply.