South Africa has cut petrol and diesel prices from January 7, offering relief to motorists and businesses as lower global oil prices and a stronger local currency reduced fuel import costs, authorities said.
The adjustment, announced by the Minister of Mineral and Petroleum Resources, marked one of the sharpest month-on-month reductions in diesel prices in recent years and reflected easing conditions in international crude and refined fuel markets.
Diesel prices fell by up to 1.50 rand per litre, while petrol prices declined by more than 60 cents per litre, according to official figures. Illuminating paraffin prices were also reduced, easing costs for households that rely on the fuel for heating and cooking.
South Africa remains a net importer of both crude oil and refined petroleum products, leaving domestic fuel prices highly exposed to movements in global markets and currency fluctuations.
According to the Department of Mineral and Petroleum Resources, the average Brent crude oil price declined during the review period, falling to about $61.47 per barrel from $63.55 previously. The drop was attributed largely to oversupply, as production increased among both OPEC+ and non-OPEC producers.
Lower crude prices filtered through to international petroleum product markets, where petrol prices eased and middle distillates such as diesel and illuminating paraffin fell more sharply. Authorities cited high fuel inventories in the northern hemisphere during winter as a key factor weighing on diesel prices.
As a result, international product prices reduced South Africa’s Basic Fuel Price a key component of pump prices by 45.03 cents per litre for petrol, 126.97 cents for diesel and 87.96 cents for illuminating paraffin, the department said.
Currency movements further amplified the price relief. The rand strengthened against the US dollar during the period under review, appreciating on average to around 16.85 per dollar from 17.22 previously. The stronger exchange rate reduced fuel price contributions by more than 20 cents per litre across petrol, diesel and paraffin.
The combined impact translated into tangible savings at the pump. Petrol 93 octane fell by 62 cents per litre, while petrol 95 declined by 66 cents. Diesel prices recorded the largest cuts, with 0.05 percent sulphur diesel falling by 1.37 rand per litre and 0.005 percent sulphur diesel down by 1.50 rand per litre.
The wholesale price of illuminating paraffin dropped by 1.10 rand per litre, offering some relief to lower-income households. In contrast, the maximum retail price of liquefied petroleum gas (LPG) rose modestly, reflecting tighter global supplies of propane and butane.
The government also confirmed that the Slate Levy a mechanism used to smooth large fluctuations in fuel prices would remain at zero cents per litre. The cumulative slate balance stood at a positive 3.3 billion rand at the end of November 2025, indicating limited short-term pressure on the fuel pricing system.
South Africa’s fuel price adjustments are reviewed monthly and reflect changes in international oil prices, refined product costs, the exchange rate and domestic taxes and levies.
While the January cut offers short-term relief, analysts caution that fuel prices remain structurally volatile. Over the past three decades, the price of petrol in South Africa has risen from below 2 rand per litre in the mid-1990s to above 21 rand per litre in 2025, driven by inflation, repeated global oil price cycles and long-term currency weakness.
Monthly fuel price movements have increasingly mirrored global supply dynamics, geopolitical tensions and exchange rate swings, rather than domestic policy changes.
The latest reduction highlights South Africa’s continued vulnerability to external shocks, particularly as domestic refining capacity has declined and dependence on imported refined products has increased.
Although easing global prices and a firmer rand have provided breathing space at the start of 2026, officials and analysts say fuel costs are likely to remain sensitive to production decisions by major oil exporters, geopolitical risks and shifts in global demand.
For households, transport operators and businesses, the January reduction offers some temporary relief, but longer-term price stability remains closely tied to global energy markets beyond South Africa’s control.
