South African motorists are starting 2026 on a positive note, with significant fuel price cuts coming into effect on Wednesday, 7 January 2026. The Department of Petroleum and Mineral Resources has officially announced reductions across petrol, diesel, and illuminating paraffin, driven by lower global oil prices and a stronger rand.
This adjustment brings petrol prices to their lowest levels in nearly four years, offering welcome relief to households and businesses alike.
Official Petrol Price Changes for January 2026
December saw international oil prices trading in a wider range, fluctuating between $58 and $63 per barrel, while the rand strengthened notably against the US dollar. These factors resulted in an over-recovery in fuel prices, paving the way for substantial reductions at the pumps.
Fuel Price Adjustments (Effective 7 January 2026)
| Fuel Type | Change |
|---|---|
| Petrol 93 | Decrease of 62 cents per litre |
| Petrol 95 | Decrease of 66 cents per litre |
| Diesel 0.05% (Wholesale) | Decrease of 137 cents per litre |
| Diesel 0.005% (Wholesale) | Decrease of 150 cents per litre |
| Illuminating Paraffin (Wholesale) | Decrease of 110 cents per litre |
| LPGAS (Gauteng) | Increase of 21 cents per kg |
While most fuel types are seeing reductions, LPGAS users in Gauteng will experience a modest increase.
Why Fuel Prices Are Coming Down
Two key factors influenced January’s fuel price adjustments:
1. Lower International Fuel Prices
Average international product prices for petrol, diesel, and illuminating paraffin declined during the review period, easing pressure on local fuel costs.
2. Stronger Rand
The rand appreciated against the US dollar, averaging R16.8485 between 4 December 2025 and 1 January 2026, compared to R17.2343 in the previous period.
This reduced the contribution to the Basic Fuel Price by:
- 20.798 c/l for petrol
- 22.116 c/l for diesel
- 22.540 c/l for illuminating paraffin
Petrol and Diesel Prices at the Pumps
Below is how the official prices compare between December 2025 and January 2026.
(Note: Diesel prices reflect wholesale rates; pump prices may differ.)
Inland Prices
| Fuel | December Official | January Official |
|---|---|---|
| 93 Petrol | R21.26 | R20.64 |
| 95 Petrol | R21.41 | R20.75 |
| Diesel 0.05% | R19.78 | R18.41 |
| Diesel 0.005% | R20.02 | R18.52 |
| Illuminating Paraffin | R13.73 | R12.63 |
| LPGAS (per kg) | R34.22 | R34.43 |
Coastal Prices
| Fuel | December Official | January Official |
|---|---|---|
| 93 Petrol | R20.47 | R19.85 |
| 95 Petrol | R20.58 | R19.92 |
| Diesel 0.05% | R18.95 | R17.58 |
| Diesel 0.005% | R19.26 | R17.76 |
| Illuminating Paraffin | R12.72 | R11.62 |
| LPGAS (per kg) | R30.97 | R31.17 |
| LPGAS (Saldanha) | R32.99 | R33.22 |
Petrol Price Joy for South Africans
The retail price of 95-octane petrol in Gauteng drops by 3% to R20.75 per litre, marking its lowest level in nearly four years. Diesel prices are even more impressive, falling by at least 7% at wholesale level.
The rand gained more than 3% against the US dollar in December, helping reduce costs for South Africa, which imports all of its crude oil.
Impact on Inflation and Interest Rates
Fuel makes up nearly 4% of South Africa’s inflation basket and indirectly affects the cost of transporting goods and services nationwide. The latest fuel price drop could therefore help ease inflationary pressures.
With annual inflation slowing to 3.5% in November, economists are increasingly optimistic about a potential interest rate cut later in January, which would further support consumers and businesses.
What This Means for Motorists
For everyday drivers, these reductions translate into:
- Lower monthly fuel expenses
- Reduced transport and logistics costs
- Potentially slower price increases on goods and services
While LPGAS prices have increased slightly, the overall January 2026 fuel adjustment is overwhelmingly positive for most South Africans.
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