The Energy Department says there will be a sizeable reduction in fuel prices in August.
A formal announcement will be made by the end of the week.
At the same time, the process to deregulate petrol prices has begun.
Energy Minister Gwede Mantashe published a notice for public comment.
The move will allow retailers to sell fuel at their own prices, up to a specific limit.
The price of petrol has almost doubled since July last year.
The latest increase saw motorists paying over R2 more per litre.