Motorists and consumers are set for significant relief at the pumps this July, following an official announcement by the Minister of Mineral and Petroleum Resources, Gwede Mantashe.

Driven by a sharp decline in global oil prices and a strengthening local currency, substantial price cuts for petrol, diesel and illuminating paraffin will take effect on Wednesday 1 July.

The final savings have been partially capped. The National Treasury has officially phased out its short-term fuel-levy relief, fully reinstating the standard fuel taxes.

The Department of Mineral and Petroleum Resources confirmed that fuel price structures across South Africa will adjust as follows at midnight:

• Petrol 93 (ULP & LRP): Decrease of 201.00 c/l (R2.01)
• Petrol 95 (ULP & LRP): Decrease of 196.00 c/l (R1.96)
• Diesel 0.05% sulphur: Decrease of 313.80 c/l (~R3.14)
• Diesel 0.0005% sulphur: Decrease of 358.80 c/l (~R3.59)
• Illuminating Paraffin (Wholesale): Decrease of 523.00 c/l (R5.23)
• Single Maximum National Retail Price (SMNRP) for IP: Decrease of 697.00 c/l (R6.97)
• LPGas (Maximum Retail Price): Increase of 16.00 c/kg nationally (19.00 c/kg increase in the Western Cape)

Note on Petrol Grades: Because 95 Octane unleaded acts as the national price-marker grade, its quarterly Basic Fuel Price (BFP) differential against 93 Octane has been updated. Motorists will notice differing retail price gaps between the two grades depending on their specific fuel-pricing zone.

South Africa’s monthly fuel pricing relies heavily on international product costs and shipping, alongside local metrics. For July two massive economic wins aligned to pull prices down:

The US-Iran MOU and crashing oil

The global oil-supply outlook improved dramatically following the signing of a Memorandum of Understanding (MOU) between the United States and Iran. This geopolitical breakthrough caused average Brent Crude oil prices to plummet from 104.59 USD to 86.53 USD per barrel during the review period.

Consequently, international refined product prices followed suit, triggering huge drops in the Basic Fuel Prices (BFP) of petrol, diesel, and illuminating paraffin by 295.97 c/l, 498.47 c/l, and 510.51 c/l respectively. Conversely, international propane and butane costs ticked upward, driving the net increase in local LPGas prices.

A resilient rand

The South African rand strengthened against the greenback during this period, appreciating from an average of R16,52 to R16,38 per USD. This stronger exchange rate chipped away an additional 11,27 c/l from petrol, 13,75 c/l from diesel, and 13,37 c/l from illuminating paraffin import costs.

While the market over-recoveries could have translated to even larger drops at the pump, two domestic financial mechanisms absorbed a portion of those gains.

In line with directives from the Minister of Finance, the temporary short-term fuel tax relief measures have been completely phased out. The full, standard General Fuel Levies are now back on the books: 429,00 cents per litre on petrol and 416,00 cents per litre on diesel. The clawback of the remaining half of this tax relief added R1,50 per litre back to petrol and R1,97 per litre back to diesel structures this month.

In a bit of positive news for the regulatory breakdown, the Self-Adjusting Slate Levy Mechanism will actually decrease by 43,8 c/l—dropping from 157,74 c/l to 113,94 c/l. This levy remains vital to addressing the country’s cumulative fuel system deficit, which stood at a negative R13,32 billion at the end of May 2026.

For coastal and commercial sectors utilizing the Port of Saldanha Bay, the Maximum Refinery Gate Price (MRGP) for imported LPGas has been set at R18 370.34 per metric ton, with the Maximum Retail Price (MRP) capped at R40,84 per kilogram, effective 1 July.