By Lehlohonolo Lehana.
Motorists will receive a second consecutive month of financial relief as the Minister of Mineral and Petroleum Resources officially announced significant fuel price decreases effective from Wednesday, 4 February 2026.
The adjustment will see both grades of petrol drop by 65 cents per litre, while diesel will decrease by up to 57 cents per litre, effectively bringing petrol prices to their lowest levels in four years.
The primary driver of this relief is a surging rand, which strengthened significantly to an average of R16.31 against the dollar during the review period. The currency’s appreciation from an average of R16.85 to R16.31 per US dollar successfully counteracted a spike in global crude oil prices.
The fuel price calculation for February was a contest between rising raw material costs and a strengthening local currency.
Crude prices climbed from $61.47 to $64.08 per barrel. This “risk premium” was fueled by geopolitical tensions in Iran, Kazakhstan, and Venezuela, as well as extreme winter weather in the United States that hampered production.
Despite the higher crude costs, international petroleum product prices actually decreased due to high global inventory levels. This contributed a “relief” factor of 36.46 c/l for petrol and up to 24.59 c/l for diesel.
The rand’s appreciation provided the most significant buffer, slashing the basic price of all fuel grades by more than 28 cents per litre.
The Slate Levy remains at zero cents per litre. This is supported by a healthy positive slate balance of R5.064 billion as of the end of December 2025.
While petrol and diesel users celebrate, LPG users will face higher prices due to tighter global supplies and cold weather in the Northern Hemisphere. In the Western Cape, the maximum retail price of LPG will increase by 36 cents per kilogram.