A light at the end of the funnel? Motorists set for fuel price relief in July
Petrol is set to drop by over R1 and diesel by more than R2 in July, offering motorists some relief after months of high prices.
POLOKWANE – After months of record-high fuel prices, Polokwane motorists might get some relief at the pumps in July, with current projections showing decreases for both petrol and diesel.
According to mid-month data from the Central Energy Fund (CEF), petrol prices are expected to drop by just over R1.00 per litre, while diesel could see decreases of more than R2.00 per litre.
The projected decreases come despite the full reinstatement of the General Fuel Levy on July 1, which adds R1.50 back to every litre of petrol and R1.96 to diesel.
What the projections show
Based on CEF data as of mid-June, here are the current projections for July:
| Fuel Type | June Price (Inland) | Projected July Price | Expected Change |
| Petrol 93 | R27.95 | ~R26.68 to R26.85 | – R1.10 to R1.32/l |
| Petrol 95 | R28.06 | ~R26.83 to R26.99 | – R1.07 to R1.37/l |
| Diesel 0.05% | R27.92 | ~R25.49 to R25.60 | – R2.44 to R2.57/l |
| Diesel 0.005% | R29.26 | ~R25.96 to R26.65 | – R2.61 to R2.96/l |
| Illuminating Paraffin | R22.47 | ~R17.49 to R17.90 | – R4.57 to R5.06/l |
Source: Central Energy Fund mid-to-late June projections
Why prices are dropping
Two major factors have driven the expected decrease:
1. Lower global oil prices: A ceasefire between the US and Iran, signed on June 15, has sent oil prices tumbling below $83 a barrel. International product prices have plunged, contributing between R2.57 and R4.80 per litre to the positive over-recovery.
2. Stronger Rand: The local currency has remained resilient, trading around R16.18 to the US dollar, which further lowers the cost of importing fuel.
The tax factor
The government’s temporary fuel levy relief, introduced in April to shield consumers from the Middle East conflict, ends on July 1. The remaining R1.50 per litre on petrol and R1.96 on diesel will be added back.
However, the drop in international oil prices is large enough to absorb the full tax increase and still deliver a net reduction for consumers.
What this means for you
For a standard 45-litre petrol car, the projected decrease means roughly R50 less per full tank compared to June’s prices.
Diesel users are set for savings of more than R2.50 per litre.
The official fuel prices for July will be confirmed by the Department of Mineral and Petroleum Resources at the end of June.
