South Africa’s gasoline prices are set to fall to their lowest level in nearly four years, as a combination of falling global crude prices and a stronger rand eases the cost of fuel.
- Gasoline prices in South Africa are decreasing to their lowest level in nearly four years.
- The price decline is attributed to falling crude oil prices and the strengthening of the South African rand.
- Diesel and gasoline prices will decrease significantly, offering cost relief to various sectors.
- A stronger rand, supported by economic reforms and higher metals prices, has positively impacted fuel costs.
South Africa’s gasoline prices are set to fall to their lowest level in nearly four years, as a combination of falling global crude prices and a stronger rand eases the cost of fuel.
According to the Ministry of Mineral and Petroleum Resources, from Jan. 7, the retail price of 95-octane petrol in Gauteng, the country’s economic hub, will fall 3% to 20.75 rand ($1.26) per litre.
Diesel prices are also set to drop sharply, with wholesale costs declining by at least 7%, providing relief to transport operators and industries reliant on fuel, Bloomberg reported.
The rand has played a significant role in the price drop, gaining more than 3% against the U.S. dollar in December. As South Africa imports all of its crude oil, a stronger domestic currency directly lowers the local cost of fuel.
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Economic reforms and metals support
The currency opened 2026 at its strongest level since 2022, supported by positive domestic trends, including ongoing economic reforms and rising metals prices.
Metals gains and the South African Reserve Bank’s 3% inflation target have further anchored expectations, boosting investor confidence in price stability.
Fuel makes up about 4% of South Africa’s inflation basket and indirectly affects the cost of most consumer goods, meaning the price drop could further ease inflation pressures.
Annual inflation slowed to 3.5% in November, raising hopes of an interest-rate cut later this month.
