South African motorists will pay less for petrol and diesel from 1 July after the Department of Petroleum and Mineral Resources published the country’s official fuel price adjustments for July.
The latest reductions follow a sharp decline in international oil prices during June, supported by easing geopolitical tensions in the Middle East and a stronger rand against the US dollar. Although market conditions pointed to even larger price cuts, the government’s decision to fully restore fuel levies reduced the savings passed on to consumers.
From Wednesday, motorists will still benefit from lower pump prices, while diesel users will see even greater reductions at the wholesale level.
Global Oil Prices And Stronger Rand Support Fuel Price Relief
Fuel prices were driven lower after international crude oil markets retreated to around US$75 per barrel by the end of June. The decline followed a ceasefire agreement between the United States and Iran, allowing shipping through the Strait of Hormuz to resume and easing concerns over global supply disruptions.
At the same time, increased oil production and improved market confidence added further downward pressure on crude prices.
South Africa also benefited from a relatively stronger rand during the fuel price review period. Between 29 May and 25 June 2026, the average exchange rate strengthened to R16.3774 against the US dollar, compared with R16.5197 during the previous review period.
The stronger currency reduced the Basic Fuel Price calculation by approximately 11.4 cents per litre for petrol and around 13.5 cents per litre for both diesel and illuminating paraffin.
Lower international petroleum product prices combined with the exchange rate improvement created significant over-recoveries, with petrol reaching around R3 per litre and diesel approaching R5 per litre before tax adjustments.
Fuel Levy Restoration Limits Consumer Savings
Despite favourable international market conditions, the final retail price reductions were substantially reduced after National Treasury fully withdrew the temporary fuel levy relief introduced during previous periods of high fuel costs.
From 1 July, the remaining R1.50 per litre fuel levy relief on petrol has been removed, while diesel will see R1.97 per litre added back into the wholesale price structure.
As a result, petrol prices will fall by roughly R2 per litre instead of the larger reductions initially expected, while diesel wholesale prices will decrease by between R3.14 and R3.59 per litre.
Government also confirmed changes to the Slate Levy mechanism, which is used to recover cumulative under-recoveries in the fuel pricing system. The levy will decrease from 157.74 cents per litre to 113.94 cents per litre, reducing the fuel price structure by 43.8 cents per litre for both petrol and diesel.
According to official figures, the combined petrol and diesel Slate account remained in deficit by R13.32 billion at the end of May 2026, requiring the continued application of the self-adjusting levy mechanism.
Meanwhile, the full General Fuel Levy has now been reinstated at 429 cents per litre for petrol and 416 cents per litre for diesel, officially ending the temporary fuel levy relief measures announced by the Minister of Finance.
Although the restoration of these levies has limited the overall reductions at filling stations, July still brings meaningful relief for households, businesses and the transport sector following several months of elevated fuel costs.
Source: Department of Petroleum and Mineral Resources, National Treasury.