South African motorists will enjoy even more relief at the petrol pumps than anticipated on Wednesday (7 January), with the Mineral and Petroleum Resources Minister Gwede Mantashe announcing substantial decreases across all fuel grades based on favourable international market conditions.
The monthly fuel price adjustment will see petrol 93 drop by 62 cents per litre, whilst petrol 95 will decrease by 66 cents per litre, bringing it to the lowest price since 2022.
Diesel users will benefit from even larger reductions, with low-sulphur diesel (0.05%) falling by 137 cents per litre and ultra-low-sulphur diesel (0.005%) dropping by 150 cents per litre.
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Fuel prices are adjusted monthly based on both international and local factors, as the country imports crude oil and finished petroleum products at internationally determined prices, including shipping costs.
Key factors behind January’s price cuts
Crude oil prices
The average Brent crude oil price decreased from $63.55 to $61.47 during the review period, primarily due to oversupply in the market caused by increased production from both OPEC+ and non-OPEC producers.
International petroleum products
Petrol prices followed crude oil’s downward trend internationally, whilst middle distillates like diesel and illuminating paraffin experienced more significant decreases due to higher winter season inventories in the Northern Hemisphere. However, propane and butane prices increased due to tighter global supply conditions.
Exchange rate benefits
The rand strengthened against the US dollar, moving from R17.22 to R16.85 per dollar during the review period, contributing to lower fuel costs for South African consumers.
Full price adjustment breakdown
Illuminating paraffin will decrease by 110 cents per litre at wholesale level. However, LPGas users will face increases, with the maximum retail price rising by 21 cents per kilogram nationally and 23 cents per kilogram in the Western Cape.
The slate levy, a mechanism to manage fuel price volatility, remains at zero cents per litre for both petrol and diesel, with the cumulative slate maintaining a positive balance of R3.3 billion at the end of November 2025.
Retail price differentials between 93 and 95 octane petrol grades will vary across fuel-pricing zones, following the quarterly adjustment of octane differentials implemented on the first Wednesday of each quarter.
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