Diesel drivers get a welcome break at the pumps, while petrol prices inch up in January. Picture Credits: MyBroardBand
By Aisha Zardad
South Africa – Good news for diesel motorists: fuel prices in South Africa are set for mixed adjustments in January 2026, with diesel expected to drop significantly while petrol sees a slight increase.
According to the Central Energy Fund (CEF), early predictions indicate the following adjustments:
- Petrol 93: +4 cents per litre
- Petrol 95: +2 cents per litre
- Diesel 0.05%: -70 cents per litre
- Diesel 0.005%: -73 cents per litre
Why Diesel is Cheaper: The drop in diesel prices comes amid a global easing of oil tensions and improved supply conditions:
- Geopolitical factors: Tensions between the United States and Venezuela have eased, reopening airspace that was closed in late November.
- Russia-Ukraine peace deal: Hopes for a resolution could increase global oil supply.
- Global surplus: The International Energy Agency (IEA) predicts a record oil surplus in 2026, with prices steadily declining throughout 2025.
- Refinery output: Increased capacity at key refineries in Europe and the U.S. has boosted diesel production.
- OPEC production: The Organisation for Petroleum Exporting Countries has lifted production caps, further increasing supply.
Petrol vs Diesel: While diesel motorists benefit from a significant reduction, petrol users face minor increases of 2–4 cents per litre. These are much smaller than the 40 cents per litre initially projected, thanks to the improving global supply situation.
Brent Crude oil prices have declined by over 3% in early December, supported by record U.S. production projected at 13.6 million barrels per day by year-end.
On the domestic front, a stronger rand has also contributed to more favourable fuel prices. With South Africa’s improving economic indicators, the US dollar/rand exchange rate currently sits at around R17.00/USD, enhancing the buying power of the local currency against imported oil.
What This Means for Motorists: Diesel vehicle owners can expect notable savings at the pumps, while petrol users will see almost negligible increases. This comes at a welcome time, as many households and businesses prepare for the start of 2026.
