Motorists to pay less at the pumps as January fuel prices drop
January starts on a positive note for motorists, with substantial reductions in petrol and diesel prices nationwide.
Good news for motorists as fuel prices are set to decrease from January 7, following an announcement by the minister of mineral and petroleum resources.
In a media statement released by the department, the minister confirmed that the adjustment is informed by both international and local factors, including global oil prices, international petroleum product prices, and movements in the rand/US dollar exchange rate.
The statement notes that the country imports both crude oil and finished petroleum products at prices determined on the international market, including shipping and other importation costs.
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One of the key drivers behind the price relief is the decline in crude oil prices. According to the statement: “The average Brent Crude oil price decreased from $63.54 to $61.47 during the period under review.” This was largely due to an oversupply in the global market following increased production by OPEC+ and non-OPEC producers.
International petroleum product prices also moved downward. The department said petrol prices mirrored the drop in crude oil, while middle distillates, such as diesel and illuminating paraffin, declined even more sharply.
“The prices of middle distillates decreased more significantly because of higher inventories for the winter season in the northern hemisphere.” This resulted in lower contributions to the basic fuel price across most fuel types.
Further easing pressure on prices was the strengthening of the local currency. The rand appreciated from an average of R17.23 to R16.85 against the US dollar during the review period.
This appreciation led to lower contributions to the basic fuel prices of petrol, diesel, and illuminating paraffin.
On the regulatory side, the minister confirmed that the slate levy will remain unchanged. “The cumulative slate amounted to a positive balance of R3.3b for petrol and diesel at the end of November 2025.”
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The statement added that, in line with the self-adjusting slate levy mechanism, the levy will stay at zero cents per litre from January 7.
Motorists should also note that differences between 93 and 95 octane petrol prices will vary by fuel-pricing zone, following the quarterly adjustment of octane differentials.
In addition, the maximum refinery gate price and maximum retail price of LPGas, imported through the port of Saldanha Bay in the Western Cape, were confirmed, with the department warning of an increase in LPGas prices despite broader fuel decreases.
As a result of these factors, fuel prices for January will be adjusted as follows:
- Petrol 93 (ULP & LRP): 62 cents per litre decrease
- Petrol 95 (ULP & LRP): 66 cents per litre decrease
- Diesel (0.05% sulphur): 137 cents per litre decrease
- Diesel (0.005% sulphur): 150 cents per litre decrease
- Illuminating paraffin (wholesale): 110 cents per litre decrease
- SMNRP for illuminating paraffin: 148 cents per litre decrease
- Maximum retail price of LPGas: 21 cents per kilogram increase, and 23 cents per kilogram increase in the Western Cape.
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