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Fuel pump showing expected South African petrol and diesel price increases

Mid-month data points to higher petrol, diesel and illuminating paraffin prices in September 2026.

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Fuel Prices Expected to Drop in July

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South African motorists could see welcome relief at the pumps in July, with fuel prices expected to decrease despite the full reinstatement of the government’s General Fuel Levy.

According to the latest fuel price data from the Central Energy Fund (CEF), strong over-recoveries driven by lower international oil prices are expected to outweigh the impact of the returning fuel levy.

Expected Fuel Price Changes for July 2026

Current projections indicate the following decreases reported by www.autotrader.co.za:

Petrol 93: Down by approximately R1.32 per litre
Petrol 95: Down by approximately R1.37 per litre
Diesel 0.05% sulphur: Down by approximately R2.57 per litre
Diesel 0.005% sulphur: Down by approximately R2.96 per litre

If these projections hold until month-end, motorists across South Africa could pay significantly less for fuel in July.

Fuel Levy Returns in Full

The expected price cuts come despite the final phase of the government’s temporary fuel levy relief coming to an end.

Earlier this year, the National Treasury reduced fuel levies to protect consumers from sharp increases in global oil prices.

Half of that relief was reinstated in June, and the remaining portion will return on 1 July 2026.

This means:

Petrol will absorb an additional R1.50 per litre in levies
Diesel will absorb an additional R1.96 per litre in levies

Despite these increases, lower international fuel costs are expected to more than offset the tax adjustment.

Why Prices Are Falling

The primary driver behind the projected reductions is lower global oil prices, which have improved fuel over-recoveries during June.

Over-recoveries occur when the actual cost of importing fuel is lower than the price assumptions used in the current fuel price calculation.

These savings are then reflected in the following month’s fuel price adjustment.

Good News for Consumers

While the return of the full fuel levy will add pressure to the pricing structure, current projections suggest motorists will still pay less for petrol and diesel in July than they did during May and June.

The final fuel price adjustments for July will be confirmed by the Department of Mineral and Petroleum Resources at the end of the month.

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