South African Petrol Prices Could Fall in December Due to Lower Oil Costs
South African motorists could see petrol prices fall by up to R2.73 per litre in December 2026 due to tumbling international oil prices and a stronger rand, though diesel drivers face price increases as the National Treasury scales back its temporary fuel levy relief.
Early Data Points to Fuel Relief
Early-month data released by the Central Energy Fund (CEF) on 9 November indicates substantial over-recoveries for both grades of petrol ahead of the festive season, IOL reported. Motorists planning long-distance holiday road trips could benefit from reductions. The latest CEF figures show petrol 93 heading for a decrease of R2.44 per litre and petrol 95 pointing to a drop of R2.73 per litre.
Carmag South Africa reported different inland projections for the same grades, putting the decrease at R1.52 per litre for 93 unleaded and R1.82 per litre for 95 unleaded. Preliminary figures also point to 95 unleaded dropping by as much as R2.53 per litre.
Diesel Costs Rise as Fuel Levy Relief Reduces
The projected savings arrive alongside planned changes to government intervention measures. Finance Minister Enoch Godongwana announced a R10 billion fuel price relief package in October that reduced the fuel levy by R1.50 per litre for petrol and R3 per litre for diesel in November.
In December, that temporary relief reduces to R1 per litre for petrol and R1.50 per litre for diesel, effectively adding 50 cents per litre back to petrol prices and R1.50 per litre to diesel.
Carmag South Africa reported that diesel prices are expected to rise by R1.49 per litre for 500ppm and R1.15 per litre for 50ppm. Slightly different wholesale projections indicate decreases of 49 cents per litre for 0.05% diesel and 85 cents per litre for 0.005% diesel before factoring in the full impact of the levy reduction.
Declining Oil Prices and Stronger Rand Favour Petrol Outlook
The favourable outlook for petrol stems from declining international oil prices and a stronger local currency. Benchmark Brent crude fell below $100 per barrel, trading around $90.40 to $98 per barrel, while the rand strengthened to approximately R16.37 to R16.40 against the US dollar.
“Brent crude is holding near $98/barrel, marginally softer, after US President Donald Trump signalled fresh Iran strikes are unlikely should talks progress, draining some of oil’s risk premium.”
said Bianca Botes, managing director at Citadel Global. Investec chief economist Annabel Bishop cautioned that longer-term transport costs remain clouded by high freight rates for oil shipping and steep insurance expenses, IOL reported.
The Department of Mineral and Petroleum Resources will announce the official fuel price adjustments toward the end of November, with the new prices taking effect on Wednesday, 2 December 2026, according to Carmag South Africa.