JOHANNESBURG – South African consumers are set to start the new year with a significant reduction in transport costs as the Department of Mineral and Petroleum Resources announced a broad-based decrease in fuel prices effective Wednesday, 7 January 2026. The price of Petrol 95 is expected to drop by 66 cents per litre, while Petrol 93 will see a reduction of 62 cents, providing a much-needed cooling effect following the inflationary pressures of late last year.
The primary driver behind this correction is a softening in global energy markets, characterized by an oversupply of crude oil. “The main contributing factor is the oversupply of oil in the market due to increased production by OPEC+ and non-OPEC producers,” the department confirmed in a statement released on Sunday. This increase in global output saw the average price of Brent Crude retreat from 63.55 USD to 61.47 USD during the period under review, directly influencing the Basic Fuel Price (BFP) calculations.
Diesel consumers will experience even steeper relief, with the price of 0.05% sulphur diesel decreasing by R1.37 per litre and the 0.005% sulphur variant dropping by R1.50 per litre. Analysts attribute the sharper decline in middle distillates to higher inventory levels in the Northern Hemisphere as the winter season progresses, which has eased the premium on products like diesel and illuminating paraffin. The latter will see wholesale prices fall by between R1.10 and R1.48 per litre, aiding lower-income households reliant on it for heating and cooking.
In Gauteng, a litre of 95-grade petrol will now retail at R20.75, while coastal motorists will pay R19.92. However, the energy basket remains a mixed bag for consumers; while liquid fuels are trending downward, the Maximum Retail Price of LPGas is set to increase by up to 23 cents per kilogram in certain regions due to tighter global supply of propane and butane.
Business leaders have welcomed the cuts, noting that the reduction in logistics costs will provide vital breathing room for the manufacturing and retail sectors. As the rand maintained a steady position against the dollar during the review window, the combined impact of currency stability and lower international product prices has effectively reversed the price hikes seen in December 2025, setting a more constructive tone for the first quarter of the 2026 fiscal year.
