South Africans will see some relief at the fuel pumps this week after the Department of Mineral and Petroleum Resources announced a significant decrease in fuel prices, effective from 00h01 on Wednesday, 7 January 2026.
It is explained that this adjustment brings meaningful reductions across petrol, diesel and illuminating paraffin, offering early-year relief to motorists, households and key sectors of the economy. However, the price of liquefied petroleum gas (LPG) will increase.
Petrol prices will decrease by 62 cents per litre for 93 ULP and LRP, while 95 ULP and LRP will drop by 66 cents per litre. Diesel users will benefit the most, with the wholesale price of 0.05% sulphur diesel falling by 137 cents per litre and 0.005% sulphur diesel decreasing by 150 cents per litre.
Illuminating paraffin will also become cheaper, with the wholesale price reduced by 110 cents per litre and the single maximum national retail price dropping by 148 cents per litre. In contrast, the maximum retail price of LPG will rise by 21 cents per kilogram.
National Chairperson of the South African Petroleum Retailers Association (SAPRA), Henry van der Merwe, says the reduction is significant given the central role fuel prices play in the economy.
“Fuel costs are a critical input across the economy. Any sustained decrease not only benefits motorists directly but also helps ease transport, logistics and production costs, which ultimately feed through to consumer prices,” Van der Merwe said.
He added that the sharp decline in diesel prices is particularly important for key industries.
“Diesel underpins agriculture, freight, mining and manufacturing. A decrease of this magnitude provides meaningful cost relief for businesses and has the potential to support price stability across supply chains,” he said.
The department says the latest adjustment was driven by favourable international and local factors, including a stronger rand against the US dollar and softer global oil prices amid continued oversupply in international markets.
Van der Merwe says the timing of the decrease is encouraging for households at the start of the year.
“Starting the year with lower fuel prices supports household budgets at a time when many South Africans are financially stretched. It also creates a more supportive environment for economic activity and helps reinforce efforts to keep inflation contained in 2026,” he said.
Despite the positive outlook, SAPRA has cautioned that fuel prices remain sensitive to global oil market volatility and currency movements.
“Geopolitical uncertainty and fluctuations in international oil markets remain ever-present risks. Ongoing stability will be key to maintaining predictable fuel pricing,” Van der Merwe added.
Saturday Star
