The Department of Mineral and Petroleum Resources has announced a further reduction in domestic fuel prices, effective Wednesday, 4 February 2026. Petrol prices have decreased by around 65c per litre, while diesel prices have fallen by between 50c and 57c per litre, depending on grade. This represents the second consecutive month of lower pump prices and places local fuel levels at their lowest point since early 2022.
According to the Department of Mineral and Petroleum Resources, the adjustment reflects a combination of a firmer rand against the U.S. dollar and lower international refined oil product prices. Although crude oil prices increased in January amid geopolitical tensions in the Middle East, these gains were offset by currency movements and higher global inventory levels, resulting in a reduced contribution to South Africa's basic fuel price.
Fuel remains a fixed input cost for agricultural production, covering field operations, irrigation systems, harvesting equipment, and on-farm and outbound transport. Changes in fuel pricing can therefore influence operational planning, particularly as growers move into peak planting and harvest periods.
Industry analysts note that while the latest reductions do not materially alter farm profitability, they may provide short-term cash flow relief. "Fuel costs account for a notable share of the farmer's input expenses," Corné Louw, head of applied economics and member services at Grain SA, told Farmer's Weekly. "A reduction of 60c to 65c/ℓ helps on paper, but when fuel accounts for over 10% of operational costs on some farms, every cent counts."
Diesel demand typically increases during intensive fieldwork periods, and even limited price adjustments can translate into measurable savings over a production cycle, particularly for larger operations with high machinery usage.
Transport costs across the agricultural value chain may also be affected. Speaking to Farmer's Weekly, Agbiz chief economist Wandile Sihlobo said South Africa's grain and oilseed logistics system relies heavily on road freight, with an estimated 75% of maize, wheat, and oilseeds moved by truck between farms, silos, and markets. Lower diesel prices could reduce freight expenses, which may in turn influence food price dynamics further downstream.
However, Sihlobo cautioned that fuel price relief is typically cyclical rather than structural. Price movements remain sensitive to international oil markets, exchange rate volatility, and geopolitical developments. He advised growers to incorporate potential reversals into budget planning rather than assuming sustained lower energy costs.
Despite the recent decline in fuel prices, other input costs such as fertiliser, seed, and electricity continue to weigh on farm margins. The current adjustment eases pressure in one area, but overall cost management remains a central issue for agricultural producers heading into the 2026 season.
Source: Farmer's Weekly
