Big petrol price hikes announced for South Africa in December

South African motorists will experience some pain at the pumps in December, with the Department of Mineral and Petroleum Resources officially announcing hikes for petrol and diesel prices. 

These hikes come on the back of rising oil prices over the past month, which offset a slightly stronger rand in November. 

Oil prices have risen as tighter US sanctions on Russia’s two largest oil companies came into effect, and US President Trump blocked Venezuelan airspace, which some saw as a precursor to a military operation against one of the world’s largest oil producers. 

Faster economic growth in India also indicates that demand for oil in 2026 may be higher than initially expected, narrowing the forecasted surplus of production. 

The following changes to fuel prices in South Africa will come into effect on 3 December –

• Petrol 93 – increase of 29 cents per litre
• Petrol 95 – increase of 29 cents per litre
• Diesel 0.05% – increase of 65 cents per litre
• Diesel 0.005% – increase of 82 cents per litre

Diesel prices are expected to rise more substantially due to limited supply from refineries in Europe and the United States. 

By far the largest driver of elevated oil prices is Trump’s actions against Venezuela, with American forces massing near the country. 

The tensions are keeping the market on edge, with potential disruptions to global supply, and thus introducing some risk premium into oil prices. 

This has partially offset concerns over a swelling surplus, with risks extending to Russia and Ukraine due to increasingly intense sanctions on oil producers intended to cripple the Russian economy. 

Oil prices have been under pressure throughout 2025 due to increasing supply from members of the Organisation for Petroleum Exporting Countries (OPEC). 

Oil prices have fallen by over 20% since the middle of June as OPEC lifted production caps on its members, with supply expected to exceed demand by a record four million barrels a day in 2026. 

The decline in oil prices has been coupled with a strengthening rand on the back of expected rate cuts in the United States, increased investor appetite for South African bonds, and improving government finances. 

The currency briefly dipped below R17 to the dollar following the MTBPS on 12 November, which projected a wider primary surplus for the current year and a stabilisation in South Africa’s debt-to-GDP ratio. 

A combination of declining oil prices and a stronger rand, if continued, is likely to translate into further relief throughout 2026.