South African motorists can expect a welcome drop in petrol prices next week, with the latest data from the Central Energy Fund (CEF) pointing to a 30 cents per litre reduction. Meanwhile, diesel users will face steeper costs, as prices are projected to rise by up to 65 cents per litre.

The month-end snapshot from the CEF shows:

• Petrol 93: Down 35c/l
• Petrol 95: Down 30c/l
• Diesel 0.05%: Up 65c/l
• Diesel 0.005%: Up 63c/l
• Paraffin: Up 29c/l

The expected petrol price cut has grown steadily through July, thanks to falling international oil prices and a relatively strong rand earlier in the month. Diesel, however, remains under pressure due to supply constraints.

Oil prices have crept back above $70 a barrel amid global tension, particularly after former U.S. President Donald Trump pushed Russia toward a resolution in the Ukraine conflict, threatening sanctions. Markets are also bracing for the return of Trump’s “Liberation Day” tariffs, which could disrupt global trade again.

South Africa faces a potential 30% tariff on exports to the U.S., a move expected to dent competitiveness and weaken the rand further. The local currency, which held below R18/$ for much of July, has slipped to around R17.93/$ in the final days of the month.

Economists warn that these tariffs, alongside upcoming interest rate decisions, could put more strain on the rand. The South African Reserve Bank is set to announce its next policy rate decision on 31 July, with analysts divided between a rate hold or a modest 25 basis point cut.

Despite ongoing challenges, petrol users can look forward to some relief at the pumps in August—though diesel and broader economic concerns remain in focus.

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