Good news about petrol prices in South Africa

Investec chief economist Annabel Bishop said that the fuel price cuts originally signalled for July in South Africa are now likely to be substantially larger.

This formed part of her weekly rand note, which stated that the peace deal announced by US President Donald Trump impacted the local currency.

On Sunday, 14 June 2026, Trump announced that the United States and Iran had reached a tentative framework agreement to end their four-month conflict.

The memorandum of understanding requires an immediate cessation of hostilities and the lifting of the U.S. naval blockade.

It will also see the reopening of the Strait of Hormuz, with Iran saying its nuclear program will be the subject of later talks.

Trump said that oil shipments from the Persian Gulf could soon resume, which sent the oil price plummeting.

“The deal with the Islamic Republic of Iran is now complete. Ships of the World, start your engines. Let the oil flow,” Trump said.

Despite the fact that a final agreement has not yet been reached, with further talks planned over the next two months, the impact was positive.

Crude oil declined by more than 5% to around $80 per barrel on Monday, 15 June 2026, touching a two-month low. This is good news for petrol prices.

South Africa’s petrol and diesel prices are mainly affected by oil prices and the rand’s strength. In both cases, it was positive.

“Markets are recalibrating after the announcement, albeit with some caution,” Bishop said. This included the rand strengthening to R16.15 per US dollar.

“The fuel price cuts originally signalled for July in South Africa are now likely to be substantially larger, if the lower oil prices persist.”

Bishop said the futures market expects oil prices to remain at these levels for some time, which will give stability.

“The rand is likely to see some further strength, and other financial market indicators improve for South Africa as well,” she said.