South Africa’s motorists and fuel users will again see meaningful reductions at the pump this week, with new fuel prices taking effect tomorrow, Wednesday February 4.

The Department of Mineral and Petroleum Resources (DMPR) has confirmed that both 93 and 95 petrol grades will fall by 65 cents per litre at retail, while diesel prices will decrease by 50 cents (0,05% sulphur) and 57 cents (0,005% sulphur) per litre respectively.

Illuminating paraffin will also move lower, while the maximum retail price for LPG will increase by 31 cents per kilogram.

This continues a trend of downward adjustments over recent months, with petrol now sitting at levels not seen since early 2022 when fuel prices were last comparably low.

Fuel adjustments – Effective February 4

Petrol  93 ULP & LRP – 65c per litre decrease in retail price.

Petrol – 95 ULP & LRP – 65c per litre decrease in retail price.

Diesel – 0,05% Sulphur Content – 50c per litre decrease in wholesale price.

Diesel – 0,005% Sulphur Content – 57c per litre decrease in wholesale price.

Illuminating paraffin – 53c per litre decrease in wholesale price & 70c per litre decrease in Single Maximum National Retail Price (SMNRP)

Industry analysts and media reports point to the South African rand’s recent appreciation against the US dollar as a key driver of the relief. The local currency strengthened significantly during the review period narrowing the cost impact of imported crude oil  and effectively offset upward pressure from global crude price movements.

Henry van der Merwe, Chairman of the South African Petroleum Retailers Association (SAPRA),  says the latest adjustments reflect the powerful influence of currency markets on domestic fuel costs.

“While consumers are seeing welcome downward movement at the pumps, the primary factor underpinning this change is the rand’s recent gains,” says van der Merwe. “Because South Africa imports both crude oil and refined products, a stronger local currency directly reduces the rand cost of those dollar-priced commodities. That effect has been significant this month and is the main reason we’re seeing petrol at its lowest in nearly four years.”

Van der Merwe also highlighted the interplay between global oil market conditions and local pricing.

“Crude oil prices have been volatile, with periodic upticks in international markets,” he says. “That volatility could have pushed fuel prices higher, but the rand’s improvement against the dollar has offset much of that upward pressure. Despite this relief, global uncertainties, including geopolitical risks affecting oil supply,  remain important factors that could influence future fuel pricing.”

He added that while lower prices offer short-term relief for consumers and businesses, sustainable fuel retailing still depends on policy certainty and support for the downstream sector.

“Fuel retailers operate with thin margins, and while price reductions are welcome for end users, the cost of doing business locally – from compliance and infrastructure costs to security and electricity – continues to present challenges,” van der Merwe notes.