Fuel price relief for South African motorists from Wednesday

Motorists will get welcome relief at the pumps, with petrol and diesel prices set to decrease significantly from Wednesday, January 7.

The Department of Mineral and Petroleum Resources announced the latest monthly fuel price adjustments, citing lower international oil prices and a stronger rand as key drivers behind the reductions.

Petrol 93 will decrease by 62 cents per litre, while petrol 95 will drop by 66 cents per litre. Diesel users will see the biggest relief, with diesel prices falling by between R1.37 and R1.50 per litre, depending on the sulphur content. The wholesale price of illuminating paraffin will decrease by R1.10 per litre.

However, the maximum retail price of LPGas will increase by 21 cents per kilogram nationally and by 23 cents per kilogram in the Western Cape.

According to the department, the primary reason for the fuel price decreases is a drop in international crude oil prices. The average Brent crude oil price fell from $63.55 to $61.47 per barrel during the review period, largely due to oversupply in global markets following increased production by OPEC+ and non-OPEC producers.

International petroleum product prices also declined, particularly for diesel and illuminating paraffin, as higher fuel inventories built up ahead of the Northern Hemisphere winter, the department said in a statement. These factors contributed to lower basic fuel prices across most fuel types.

A stronger rand against the US dollar also helped push fuel prices lower. The currency strengthened from an average of R17.22 to R16.85 against the dollar during the review period, easing the cost of imported fuel.

The slate levy, which helps balance over- or under-recoveries in fuel pricing, will remain unchanged at zero cents per litre for both petrol and diesel. This follows a cumulative positive slate balance of R3.3 billion recorded at the end of November 2025.

The department also confirmed that octane differentials between petrol 93 and 95 will be adjusted in line with quarterly pricing rules, meaning prices may vary slightly across different fuel-pricing zones.

A detailed fuel price schedule for all magisterial district zones will be published on Tuesday, January 6.

The South African Petroleum Retailers Association (SAPRA) said the price reduction is particularly significant given the role fuel prices play in broader economic conditions.

Chairperson of the association, Henry van der Merwe, said: “Fuel costs are a critical input across the economy. Any sustained decrease not only benefits motorists directly but also helps ease transport, logistics, and production costs, which ultimately feed through to consumer prices.

“Diesel underpins agriculture, freight, mining, and manufacturing. A decrease of this magnitude provides meaningful cost relief for businesses and has the potential to support price stability across supply chains.”

Although the outlook has improved, SAPRA warned that fuel prices are still sensitive to global developments and exchange rate movements.

“Volatility in international oil markets and geopolitical uncertainty remain ever-present risks. Ongoing stability will be key to maintaining predictable fuel pricing,” said Mr van der Merwe.