South Africa kicks off 2026 with a fuel price cut

5 Jan 2026

The strengthening of the rand, as well as the easing of global oil prices, have contributed to South Africa’s first fuel price drop of 2026. The Department of Mineral and Petroleum Resources (DMPR) recently announced a decrease in fuel prices, effective 7 January 2026.

Image credit: Jesse Donoghoe on Unsplash

According to Henry van der Merwe, national chairperson of the South African Petroleum Retailers Association (SAPRA), the reduction is particularly significant given the role fuel prices play in broader economic conditions.

“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,” says Van der Merwe.

He notes that the sharp reduction in diesel prices is crucial.

“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.”

Van der Merwe says the timing of the decrease is encouraging.

“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.”

While the outlook has improved, SAPRA cautions that fuel prices remain sensitive to global developments and currency movements.

“Volatility in international oil markets and geopolitical uncertainty remain ever-present risks.

“Ongoing stability will be key to maintaining predictable fuel pricing,” Van der Merwe adds.