Motorists can expect a sizeable reduction in the price of petrol and diesel next month, according to the latest data from the Central Energy Fund (CEF).
The CEF highlighted an over-recovery in the price of both fuel types for the third week of January.
Petrol is likely to see a drop of between 66c and 69c per litre, and diesel will similarly benefit from a cut of between 63c and 71c per litre.
Below are the CEF’s updated fuel price adjustment predictions for February 2026:
- Petrol 93: decrease of 66 cents per litre
- Petrol 95: decrease of 69 cents per litre
- Diesel 0.05% (wholesale): decrease of 63 cents per litre
- Diesel 0.005% (wholesale): decrease of 71 cents per litre
- Illuminating paraffin: decrease of 60 cents per litre
Unfortunately, while this is a positive development for consumers, the reductions are lower than the previous reported reductions of R1.15 per litre for petrol and R1.63 per litre for diesel.
The lower savings are attributed to global economic uncertainty, which has resulted in fluctuating oil prices.
United States President Donald Trump’s recent talks about taking control of Greenland “one way or another” has led to a tense standoff between the US and European Union.
This included threats to impose tariffs on EU countries that did not support the takeover.
This prompted new concerns about an escalation in the global trade war; however, the situation de-escalated after the recent meetings at the World Economic Forum in Davos, where the Trump administration cooled its rhetoric.
In the wake of these events, the global oil price rose from $62 per barrel to $65 per barrel.
The good news is that oil prices are expected to trend lower this year as a result of greatly increased supply, according to the International Energy Agency.
A better exchange rate
While the oil price has increased during the period under review, South Africa’s fuel prices are still expected to drop thanks to the rand’s strong performance.
The US dollar has weakened following the country’s stance on Greenland and its recent actions in Venezuela, helping the rand reach a new exchange rate of R16.09 per dollar – a level not seen in three and a half years.
The dollar’s declining value is not the only reason for the rand’s growth, as domestic factors have also helped to improve the currency’s exchange rate.
South Africa was recently removed from the FATF’s grey list, and received its first ratings upgrade in 20 years.
Domestic growth is also expected to rise by 1.5% in 2026 and 2027, compared to 1.3% in 2025 and 0.6% in 2024.
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