South African drivers will see a significant drop in fuel prices starting Wednesday, July 1, 2026, as confirmed by the Department of Petroleum and Mineral Resources. This comes despite the expiration of the government’s temporary fuel levy support. The cuts are largely attributed to a sharp decline in international oil prices and a stable exchange rate between the South African rand and the US dollar, which have resulted in notable fuel price over-recoveries.
Brent crude oil prices dropped to approximately $75 per barrel by the end of June, after eased tensions between the United States and Iran alleviated fears of disruptions in the Strait of Hormuz. This decline has led to an over-recovery of about R3 per litre for petrol and nearly R5 per litre for diesel. However, drivers won’t see the full impact of these recoveries due to the reintroduction of the fuel levy, which adds R1.50 per litre to petrol and R1.97 per litre to diesel.
Despite the reinstated levy, fuel prices are set to decrease significantly owing to the global oil price drop and improved exchange-rate conditions. From July 1, inland prices for Petrol 93 will fall from R27.95 to R25.94 per litre, and Petrol 95 from R28.06 to R26.10 per litre. Diesel 0.05% and 0.005% will decrease from R27.92 to R24.78 and from R29.26 to R25.67 per litre, respectively. Illuminating paraffin will see a drop from R22.47 to R17.24 per litre.
At coastal locations, Petrol 93 will decrease from R27.16 to R25.15 per litre, and Petrol 95 from R27.19 to R25.23 per litre. Diesel 0.05% will go from R27.05 to R23.91 per litre, while Diesel 0.005% will reduce from R28.00 to R24.41 per litre. Illuminating paraffin will fall from R21.42 to R16.19 per litre. The price movements are primarily driven by international petroleum prices and the rand-to-dollar exchange rate, with Brent crude trading around $72.26 per barrel and the rand at approximately R16.46 per US dollar at the time of reporting.
Lower fuel costs are anticipated to bring relief to both households and businesses by cutting transport expenses and easing inflationary pressures. Nonetheless, fuel prices remain susceptible to geopolitical shifts, particularly developments in Middle Eastern tensions and the global oil supply landscape.