We will get a reprieve on fuel prices from Wednesday, February 4, 2026. The diesel price (0.05% wholesale inland) could decline by fifty cents per litre (50.00 c/l), while the petrol price (95 ULP inland) could fall by sixty-five cents per litre (65.00 c/l).

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, although the summer crop plantings are complete. Therefore, lower fuel prices help. Remember, fuel accounts for a notable share of some farmers’ costs. For example, among grain farmers’ input costs, fuel accounts for 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.