Motorists get a break as petrol, diesel, and illuminating paraffin prices decrease from Wednesday.
2026 is starting with good news for motorists as petrol, diesel, and illuminated paraffin prices decrease from Wednesday, 7 January 2026.
The Minister of Mineral and Petroleum Resources, Gwede Mantashe, announced the adjustment of fuel and fuel prices on Sunday.
South Africa’s fuel prices are adjusted monthly, informed by international and local factors.
Petrol and diesel prices decrease from Wednesday
The international factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level. This also includes importation costs, such as shipping costs.
The fuel price adjustments for January 2026 are as follows:
- 93 Unleaded Petrol (ULP) and Lead Replacement Petrol (LRP) decrease by 62 cents per litre;
- Petrol 95 (ULP and LRP) decreases by 66 cents per litre;
- Diesel decreases by R1.50 per litre;
- Illuminating paraffin decreases by R1.10 per litre;
- The Single Maximum National Retail Price (SMNRP) for illuminating paraffin decreases by R1.48 per litre; and
- The Maximum Retail Price of Liquefied Petroleum Gas (LPG) increases by 21 cents per litre and 23 cents per litre in the Western Cape.
The department said the main reasons for the fuel price adjustments include crude oil prices, international petroleum product prices, and the Rand/US Dollar exchange rate.
ALSO READ: Motorists warned to brace for hefty petrol price hike from midnight
Other factors include the implementation of the Slate Levy, octane differentials between 95 and 93 petrol grades, and the Maximum Refinery Gate Price (MRGP) for LPGas imported through the Port of Saldanha Bay in the Western Cape.
It said that the average Brent Crude oil price decreased from 63.55 US dollars (USD) to 61.47 USD during the period under review.
“The main contributing factor is the oversupply of oil in the market due to increased production by OPEC+ and non-OPEC producers,” the department said.
Reason for fuel price decreases
The average international product prices of petrol followed the decreasing trend of crude oil.
The department said the prices of middle distillates, such as diesel and illuminating paraffin, decreased more significantly. This was due to higher inventories for the winter season in the Northern Hemisphere.
“These factors led to lower contributions to the basic fuel prices of petrol, diesel, and illuminating paraffin by 45.03 c/l, 126.97 c/l, and 87.96 c/l, respectively. The prices of propane and butane increased during the period under review due to tighter global supply,” it said.
NOW READ: New year blues as petrol and diesel prices increase from Wednesday, 1 January 2025
With the implementation of the slate levy, the department said the cumulative slate amounted to a positive balance of R3.3 billion for petrol and diesel. This was recorded at the end of November 2025.
“In line with the provisions of the Self-Adjusting Slate Levy Mechanism, the slate levy remains unchanged at zero cents per litre in the price structures of petrol and diesel with effect from the 7th of January 2026,” the department said.
