WHAT January 2026 fuel prices OUGHT to be at pumps

Today South African motorists are celebrating January 2026 fuel prices like they’ve won the lotto. The price relief is due to a drop in brent crude oil prices and a recovery of the rand versus the US dollar. These are combining to produce the lowest fuel prices in four years …  

JANUARY 2026 FUEL PRICES

Of course, South Africans will take a win wherever they can get it, and we welcome the 3% relief. But what if we told you January 2026 fuel prices are still 30% higher than they ought to be. Let’s take a look at the complex tax and levy structure that significantly inflates the price of every single litre you pump into your vehicle.

Let’s use the inland petrol 93 price as our baseline, R20.64 per litre from today (Wednesday 7 January 2026). Firstly, the General Fuel Levy was recently increased by the National Treasury to R4.01 per litre. This inflation-linked adjustment back in June 2025 represents the single largest tax component. And it came about after VAT increases were vetoed by the GNU.

ROAD ACCIDENT FUND FARCE

Next, there’s the much-maligned Road Accident Fund levy. This adds another R2.18 to the price of every litre you use. The funding in meant to compensate victims of motor vehicle accidents. However, it’s been widely exploited by fraudsters and corrupt officials, facing significant controversy over financial mismanagement. These two major levies alone account for R6.19 out of R20.64 per litre.

Furthermore, a carbon tax adds 14 cents per litre. Customs and excise duties another 4 cents. This brings the total tax burden on January 2026 fuel prices to R6.37 per litre, or 30.9% of what motorists pay at the pump. And it should be noted that the levies flow directly into National Treasury’s general revenue fund to be used for any government expenditure it sees fits.

BUT THERE’S MORE: JANUARY 2026 FUEL PRICES

Unfortunately, the story doesn’t end with taxes and levies. Because January 2026 fuel prices have several operational costs worked into them by the Department of Mineral Resources and Energy. There is a R3.00 per litre margin paid to service station owners. Inland transportation costs are roughly 87 cents, there’s a wholesale margin of about 74 cents per litre, and secondary storage of approximately 57 cents per litre.

Therefore, if South African motorists could purchase fuel without any government-imposed taxes and levies it would cost R14.27 per litre. That’s a saving of R6.37 per litre. Accordingly, an average-sized, 50-litre tank would cost R712 to fill up versus R1 032, a saving of R318 per fill-up.

But what do you think? Are you excited about January 2026 fuel prices? And what do you think should be done about taxes and levies? Be sure to let us know in the comments section below …