Steep fuel price drops expected in July, but tax hikes will soften the blow

Petrol and diesel prices poised to tumble
Petrol and diesel prices poised to tumble PHOTO: Unsplash

Steep fuel price drops expected in July, but tax hikes will soften the blow


South African motorists can look forward to a significant breather at the pumps next month, as latest mid-month data points to a massive drop in the prices of both petrol and diesel.

According to daily fuel position statistics released on 11 June, steep declines in international product prices alongside a supportive local currency are driving substantial over-recoveries across all fuel categories.

While June’s fuel price decreases were ultimately offset by the government halving its R3,00 fuel levy relief, further price cuts are projected for July, with petrol potentially dropping by up to R2,56 and diesel by up to R4,68.

However, these upcoming July reductions will be partially countered as the National Treasury adds back the remaining levy amounts of R1,50 for petrol and R1,97 for diesel.

If these trends hold until the end of the month, the upcoming July price adjustment will bring widespread financial relief to consumers and the transport sector alike.

The forecast drops
The average unit over-recovery recorded between 29 May 2026 and 11 June 2026 outlines a highly positive forecast for the next official fuel price adjustment:

Petrol 95 ULP: Showing an average over-recovery of 251,540 cents per litre (c/l), hinting at a potential price cut of around R2,52 per litre.

Petrol 93 ULP & LRP: Reflecting an average over-recovery of 253,646 c/l, indicating a drop of roughly R2,54 per litre.

Diesel 0.05%: Recording a massive average over-recovery of 427,512 c/l (around R4,28 per litre).

Diesel 0.005%: Displaying an even higher average over-recovery of 456,673 c/l (around R4,57 per litre).

Illuminating Paraffin: Poised for the largest relief, with an average over-recovery of 488,402 c/l.

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