South Africa’s fuel prices are expected to fall in the new year, bringing relief to motorists as petrol, diesel and illuminating paraffin prices decrease from Wednesday, 7 January 2026, the Department of Mineral Resources and Energy has announced.
The monthly adjustment follows the country’s standard pricing review process, which takes into account international crude oil and refined product prices, the Rand/US Dollar exchange rate, shipping and other import costs. Domestic fuel prices are tied to international benchmarks under South Africa’s Basic Fuels Price (BFP) system, meaning global market trends and currency strength heavily influence local pump prices.
For January’s price change, 93‑octane petrol is set to decrease by around 60–62 cents per litre, while 95‑octane petrol is expected to fall by about 64–66 cents per litre. Diesel prices will see larger cuts, with reductions of approximately R1.35 to R1.50 per litre depending on the grade, and illuminating paraffin will be cheaper by around R1.08 to R1.10 per litre.
The anticipated price relief comes after data showed a combination of a stronger South African rand against the US dollar and lower international crude oil prices toward the end of 2025. As the rand strengthens, it helps offset the cost of imported fuels, effectively reducing the basic fuels price. Brent crude oil, a key global benchmark, also traded lower over the period used to calculate the pricing, contributing to the downward adjustment.
However, not all fuel‑related costs are falling: the Maximum Retail Price (MRP) for Liquefied Petroleum Gas (LPG) is expected to increase slightly in some regions, such as the Western Cape, due to supply and zone differential factors.
Analysts and motoring groups welcomed the cuts, noting that the reductions follow patterns seen in recent months where petrol and diesel prices have fluctuated with global oil markets and currency movements — with South African drivers experiencing both increases and decreases in fuels over 2025.
South Africa inflation eases in November on lower fuel costs
