The Competition Commission said the cost reduction of PCR tests is due to advancing technologies in dealing with the COVID-19 pandemic.
In the private sector the tests are now R500, which came into immediate effect on Sunday.
The commission made the announcement on Sunday, stating it had reached an agreement with major laboratories.
South Africa’s two biggest private laboratories have agreed to reduce the price of the COVID-19 PCR test from R850 to R500, with smaller laboratories expected to follow suit.
This follows a complaint lodged in October that the prices were highly inflated.