South Africans received an early boost at the pumps this week after the Department of Mineral & Petroleum Resources (DMPR) announced a significant fuel price reduction effective from midnight on Wednesday, 7 January 2026.

The January adjustment brings meaningful relief for motorists, households and businesses, with notable decreases across petrol, diesel and illuminating paraffin prices. Petrol users will see the retail price of 93 unleaded and lead replacement petrol drop by 62 cents per litre, while 95 unleaded and lead replacement petrol decreases by 66 cents per litre.

Diesel prices recorded the sharpest reductions, with wholesale prices for 0.05% sulphur diesel falling by 137 cents per litre and 0.005% sulphur diesel decreasing by 150 cents per litre. Illuminating paraffin prices also declined substantially, with the wholesale price down by 110 cents per litre and the single maximum national retail price reduced by 148 cents per litre. Liquefied petroleum gas (LPG) was the exception, increasing by 21 cents per kilogram.

According to South African Petroleum Retailers Association (SAPRA) national chairperson Henry van der Merwe, the reduction is significant given the central role fuel prices play in the broader economy. He said lower fuel costs not only benefit motorists directly, but also help reduce transport, logistics and production expenses, which can filter through to lower consumer prices.

Van der Merwe highlighted the diesel price cut as particularly important, noting its impact on 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,” he said.

The latest price adjustment was driven by favourable international and local conditions, including a stronger rand against the US dollar and softer global oil prices amid ongoing oversupply.

While welcoming the improved outlook, SAPRA cautioned that fuel prices remain sensitive to global market volatility and geopolitical uncertainty, and that sustained stability will be key to maintaining predictable pricing through 2026.