We will get a reprieve on fuel prices from today, January 7, 2026. The diesel price (0.05% wholesale inland) could decline by between R1.37 and R1.50 a litre, while the petrol price (95 ULP inland) could fall by 66 cents per litre.
The relatively stronger ZAR/USD, combined with a reasonably lower oil price for much of the month, are the major driver of the decline in fuel prices.
This is a welcome development and bodes well for the South African agricultural sector. We are still in a period of high fuel consumption in South Africa’s agriculture. The planting season for summer grains and oilseed is on its tail end. Fuel accounts for a notable share of grain farmers’ input costs, about 13%.
Beyond the farmers, agribusinesses will also benefit from lower costs, particularly in logistics. It is worth noting that roughly 81% of maize, 76% of wheat and 69% of soybeans in South Africa are transported by road.
On average, 75% of national grains and oilseeds are transported by road, as is a substantial share of other agricultural products.
Overall, lower fuel prices are a welcome development that supports the agricultural sector and, ultimately, moderates food prices.
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