Fuel Prices Set for Sharp Cut from Wednesday as Petrol Drops to Lowest Level Since 2022
Fuel prices are set to fall again this week, with significant price decreases expected for both petrol and diesel from Wednesday, February 4.
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South African motorists are set for further financial relief this week as fuel prices are expected to drop sharply from Wednesday, February 4, extending the country’s fuel price-cutting streak into February.
Late-month data from the Central Energy Fund (CEF) indicates that petrol prices could fall by about 64 cents per litre, while diesel is forecast to drop by between 50 and 56 cents, depending on sulphur content. If confirmed, this would push petrol prices to their lowest levels in more than three years.
At the coast, 95 Unleaded petrol is expected to fall to around R19.28 per litre, while inland prices in Gauteng could drop to about R20.11, with 93 Unleaded hovering near R20.00. Diesel motorists will also benefit, with 50ppm diesel expected to decline to roughly R17.20 at the coast and R17.96 inland.
The anticipated reductions follow January’s fuel price cuts, which saw petrol prices fall by up to 66 cents per litre and diesel by as much as R1.50, offering welcome relief to households and businesses facing high living and transport costs.
Rand strength drives relief
The over-recovery in fuel prices has been driven largely by lower international fuel prices and a stronger rand, which is contributing approximately 36 cents to the expected petrol price reduction.
Last week, the rand strengthened beyond R16 to the US dollar for the first time in nearly four years, buoyed by a softer US currency and renewed investor confidence in South Africa. This confidence has been underpinned by improved electricity supply, stronger business sentiment and a solid agricultural harvest, with the World Bank estimating economic growth of around 1.3% in 2025.
Oil volatility remains a risk
While global oil prices were relatively stable earlier in January, increased volatility later in the month has raised concerns that the fuel price relief may not last indefinitely. Brent crude briefly surged to $68 a barrel before slipping to around $64.95 on Monday, following signals that US-Iran tensions may be easing.
Motorists should note that the current projections are based on unaudited data, and the final fuel price adjustments will be announced by the Department of Mineral and Petroleum Resources early this week.
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