5 January 2026 — South African motorists are breathing a sigh of relief as significant fuel price decreases take effect this week, with petrol dropping by up to 66 cents per litre and diesel plummeting by as much as R1.50 per litre.
The Department of Mineral and Petroleum Resources announced the price adjustments, which came into effect on Wednesday, 7 January 2026, marking one of the most substantial decreases in recent months.
The Numbers
According to the official announcement, the price changes are as follows:
- Petrol (95 octane): Down 62 cents per litre (inland) and 66 cents per litre (coastal)
- Petrol (93 octane): Down 62 cents per litre (inland) and 66 cents per litre (coastal)
- Diesel (0.05% sulphur): Down R1.37 per litre (inland) and R1.50 per litre (coastal)
- Diesel (0.005% sulphur): Down R1.37 per litre (inland) and R1.50 per litre (coastal)
In Gauteng, a litre of 95-octane petrol now costs R20.75, down from R21.41 in December.
What’s Driving the Decrease?
Two primary factors have contributed to the welcome relief at the pumps:
Stronger rand performance: The South African currency appreciated against the US dollar during the review period, with the average exchange rate improving from R17.23 to R16.85. This strengthening of the rand has helped reduce the cost of importing fuel.
Lower international oil prices: The average Brent crude oil price decreased from $63.55 per barrel to $61.47 during the period under review.
Market analysts attribute this decline to increased oil production by OPEC+ countries and non-OPEC producers, creating an oversupply in the global market.
Impact on Consumers and Businesses
The diesel price decreases are particularly significant for South Africa’s transport and logistics sectors, which have been grappling with elevated fuel costs.
Lower diesel prices typically translate to reduced transportation costs, which could help ease pressure on food prices and other consumer goods.
For individual motorists, the petrol price reduction means tangible savings at the pump. A typical 50-litre tank fill-up will now cost approximately R31-R33 less than it did in December.
Looking Ahead
The January decreases provide much-needed relief following price increases in December 2025.
However, fuel prices remain subject to monthly adjustments based on international oil prices and currency fluctuations.
Industry observers note that while the current decreases are welcome, South African fuel prices continue to be influenced by global market volatility and local economic factors, making long-term predictions challenging.
Motorists are advised to make the most of the current lower prices, as future adjustments will depend on oil market developments and rand performance in the coming months.
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