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Fuel price cut delivers early boost to households, businesses, and inflation outlook

Jan 05, 2026 Henry van der Merwe, South African Petroleum Retailers Association (SAPRA),


Fuel price cut delivers early boost to households, businesses, and inflation outlook

 

South Africans will enjoy a welcome easing of pressure at the pumps this week, following the Department of Mineral & Petroleum Resources (DMPR) announcement of a significant fuel price decrease effective from 00h01 on Wednesday, 7 January 2026. The January adjustment reflects meaningful reductions across petrol and diesel, offering early-year relief to motorists, households and key sectors of the economy.

 

Fuel Price Adjustments – Effective 7 January 2026

 

Petrol – Retail price

93 ULP & LRP: 62.00 cents per litre decrease

95 ULP & LRP: 66.00 cents per litre decrease

 

Diesel – Wholesale price

0.05% sulphur: 137.00 cents per litre decrease

0,005% sulphur: 150.00 cents per litre decrease.

 

Illuminating paraffin

Wholesale: 110.00 c/litre decrease

Single Maximum National Retail Price (SMNRP): 148.00 c/litre decrease

 

LPG 

Maximum Retail Price: 21.00 c/kg increase

 

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 especially important. “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.”

 

The latest adjustment was driven by favourable international and local factors during the review period. The rand strengthened against the US dollar, while global oil prices softened amid continued oversupply in international markets.

 

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.

 

SAPRA encourages motorists to use this period of relief to plan ahead, maintain their vehicles properly to maximise fuel efficiency, and remain informed about future price movements.

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