Big petrol price cuts announced for South Africa

South African motorists will experience relief in February, with petrol prices coming down by 65 cents per litre and both grades of diesel by over 50 cents per litre. 

This is on the back of a stronger rand and a flat average oil price. However, the surge in oil prices towards the end of the month has limited the relief motorists experience. 

The decline is still significant enough to have a meaningful impact on inflation and interest rates in South Africa, with downward pressure on fuel prices helping the Reserve Bank to reach its 3% inflation target. 

The Department of Mineral and Petroleum announced the following changes to take effect from 4 February 2026 –

• Petrol 93 – decrease of 65 cents per litre
• Petrol 95 – decrease of 65 cents per litre
• Diesel 0.05% – decrease of 50 cents per litre
• Diesel 0.005% – decrease of 57 cents per litre

While this is substantial relief, it is not as much as what was initially expected by the Central Energy Fund (CEF) at the beginning of January. 

The CEF, which tracks fluctuations in international oil prices and the rand-dollar exchange rate, initially forecasted cuts of over R1 per litre for both grades of petrol, with diesel prices set to come down by around R2 per litre.

However, a surge in oil prices over the past two weeks ended hopes of such deep cuts to the price of fuel in South Africa. 

A rising oil price has come on the back of increasing fears of disruptions to supplies from major oil producers, particularly Iran and countries that use the Persian Gulf to access the Indian Ocean.

With US President Donald Trump instructing the US military to position assets in the region for a potential strike on Iranian military targets, traders fear this has the potential to disrupt supply through the Persian Gulf. 

Market concerns are primarily focused on how any fallout from an escalation in tensions could impact shipping through the Strait of Hormuz, a narrow passage separating Iran and the Arabian Peninsula. 

Tankers carrying crude and liquefied natural gas transit through the strait to deliver cargoes worldwide at a rate of about 20 million barrels per day.

The rand’s strength has mitigated the impact of the rising oil price to some extent, with it reaching below R16 to the dollar for the first time since 2022. 

South Africa’s currency has started 2026 on the front foot against the US dollar, with it strengthening to below R16 to the greenback. 

The rand has benefited immensely from elevated global uncertainty, with the currency being boosted by rising precious metals prices. 

The soaring gold price forms part of an ongoing rally in commodity prices, particularly for precious metals, which has been boosting South Africa’s trade balance.

While record gold and silver prices have supported rand gains, economic reforms and a cautious Reserve Bank have also helped.

The National Treasury adopted a lower inflation target last year, boosting confidence that the country will maintain its interest-rate advantage over the US.