Motorists with diesel cars can expect a drop in fuel prices next month, though petrol users won’t be as lucky.
This is according to the latest data from the Central Energy Fund (CEF), which has published its early predictions for the fuel price adjustments that will take place in January 2026.
The international oil price has dropped following an ease in tensions between the United States and Venezuala, after the latter’s airspace was closed a the end of November.
Adding to this is the fact that a peace deal between Russia and Ukraine is looking increasingly likely, which if concluded, would significantly add to the global oil supply.
The International Energy Agency (IEA) estimates that there will be a record oil surplus in 2026, and prices have steadily declined throughout 2025 as a result.
Based on these factors, the CEF indicated that the following fuel price adjustments will be made in January:
- Petrol 93 – Increase of 4 cents per litre
- Petrol 95 – Increase of 2 cents per litre
- Diesel 0.05% – Decrease of 70 cents per litre
- Diesel 0.005% – Decrease of 73 cents per litre
Petrol vs diesel
The disparity between the petrol and diesel price can be traced to the easing of capacity constraints at various refineries in Europe and the United States, which are essential for diesel production worldwide.
Compared to the beginning of December, petrol prices are only going up by an imperceptible 4c per litre, rather than the 40c per litre initially envisioned.
Diesel rates were also expected to be stagnant, but have since improved to a recovery of around 70c per litre.
Brent Crude oil prices have declined by over 3% during the second week of December, as the United States indicated domestic production would hit a record 13.6 million barrels by the end of the year, according to BusinessTech.
The global supply is also increasing thanks to the Organisation for Petroleum Exporting Countries (OPEC) lifting production caps on its member nations.
On the domestic level, the rand has performed well this month as a result of improving macroeconomic conditions.
Stronger-than-expected growth and recovering government finances have stoked investor confidence in South Africa, leading to a US dollar/rand exchange rate of R17.00/USD.
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