Fuel prices are set to start 2026 with a positive twist, as diesel prices are expected to drop significantly in January, reversing the massive increase seen in December. According to the Central Energy Fund's data, the overrecovery on diesel by Monday was an impressive 94c to R1.02 per litre, depending on sulphur content. This indicates a potential decrease in the following month. In December, diesel prices rose by 66c and 83c for 0.05% and 0.005% sulphur, respectively. However, the overrecovery on petrol is less substantial, with only 17c for 95-octane and 15c for 93-octane, making it unlikely that petrol prices will reverse the 29c per litre increase from December. The overrecoveries are updated daily and the period for determining January's fuel prices began on November 28th, with the halfway mark reached. The rand-dollar exchange rate plays a crucial role, contributing between 13c and 14c to the overrecoveries, as the rand has stabilized below R17 per dollar over the past week, even strengthening to R16.72 on Tuesday. The price of diesel has also dropped significantly. Following December's increase, 95-octane petrol costs R21.41 per litre in Gauteng and R20.58 per litre at the coast, while the wholesale price of diesel with 0.05% sulphur is about R19.79 per litre in Gauteng and R18.96 per litre at the coast. The final fuel price changes for January will be effective from January 7th, and apart from the overrecoveries, there is a change in zone differentials at the beginning of every quarter, which could impact prices by a few cents. Stay tuned for more updates on fuel prices and other financial news.
