South African motorists will see meaningful relief at the pumps from Wednesday, 7 January 2026, following the announcement of substantial fuel price cuts by Gwede Mantashe, Minister of Mineral and Petroleum Resources.
Petrol prices will drop by up to 66 cents a litre, while diesel will fall by as much as R1.50 a litre. Lower international oil prices and a stronger rand are driving the declines.
Monthly fuel price adjustments explained
The Department of Mineral and Petroleum Resources confirmed that local fuel prices are adjusted monthly based on a basket of international and domestic factors. As South Africa imports both crude oil and refined petroleum products, global oil prices, shipping costs, and exchange rates play a central role in determining pump prices.
Lower oil prices and a firmer rand
The average Brent crude oil price declined from $63.54 to $61.47 per barrel during the review period. The drop followed an oversupply in global markets after increased production by OPEC+ and non-OPEC producers.
International petroleum product prices also softened. Petrol prices tracked the decline in crude oil prices. At the same time, middle distillates such as diesel and illuminating paraffin recorded steeper declines due to higher stock levels ahead of the Northern Hemisphere winter.
These movements resulted in lower Basic Fuel Price contributions of 45.03 cents per litre for petrol, 126.97 cents for diesel, and 87.96 cents for illuminating paraffin.
The rand strengthened against the US dollar, appreciating on average from R17.23 to R16.85. This reduced fuel price contributions by between 20 and 22 cents per litre across petrol, diesel and illuminating paraffin.
Slate levy remains unchanged
The department confirmed that the slate levy will remain at zero cents per litre for both petrol and diesel. This follows a positive cumulative slate balance of R3.3 billion at the end of November 2025.
Changes to octane differentials
Adjustments to the octane differential between 95 and 93 petrol grades will take effect from 7 January. This means pump prices for the two grades will vary across fuel-pricing zones.
LPG prices move higher
While petrol and diesel prices are falling, the maximum retail price of liquefied petroleum gas will increase. Higher international propane and butane prices, driven by tighter global supply, are behind the rise.
The Maximum Refinery Gate Price for LPG imported through the Port of Saldanha Bay has been set at R12,603.99 per metric ton. The maximum retail price is R33.22 per kilogram. LPG prices will increase by 21 cents per kilogram nationally and by 23 cents per kilogram in the Western Cape.
January 2026 fuel price changes
From 7 January 2026, fuel prices will change as follows:
Petrol 93 ULP and LRP: 62 cents per litre decrease
Petrol 95 ULP and LRP: 66 cents per litre decrease
Diesel 0.05% sulphur: 137 cents per litre decrease
Diesel 0.005% sulphur: 150 cents per litre decrease
Illuminating paraffin wholesale: 110 cents per litre decrease
Single maximum national retail price for illuminating paraffin: 148 cents per litre decrease
Maximum retail price of LPG: 21 to 23 cents per kilogram increase
