South African motorists are expected to receive significant fuel price cuts in June 2026, driven by a sharp improvement in global oil prices after the United States and Iran signed a memorandum of understanding to ease tensions and restore stability in oil supply routes.
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According to the Central Energy Fund (CEF), petrol and diesel are currently over-recovering, with petrol showing a potential reduction of about R2.90 to R2.94 per litre, while diesel could drop by between R4.57 and R4.97 per litre. Illuminating paraffin is also expected to decrease by about R5.13 per litre.
The improvement follows a decline in global oil prices after the deal aimed at reopening the Strait of Hormuz, a key route for global oil shipments, helped ease earlier supply fears that had driven fuel costs up.
However, the expected relief at the pumps may be reduced by the partial return of the fuel levy in July, with petrol and diesel taxes increasing again to R1.50 and R1.96 per litre respectively.
Analysts caution that while oil prices have dropped, full stabilisation of fuel costs may take time as global markets recover and stockpiles are rebuilt, with pre-crisis price levels unlikely to return before the end of 2026.
Article by Betha Madhomu for African Insider
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