The Rand’s value has grown stronger. This is due to the support of an increase in gold price exports. Local investors had already anticipated the increase before the release of the latest economic data. The annual data releases of the year are for insights into the health of the South African economy. This occurred as oil prices fell. South African motorists have every right to be happy as fuel prices are expected to drop significantly in early January 2026 following the holiday season.
As things currently stand, the diesel price is set to decrease by a whopping 100 to 109 cents per litre, while petrol is set to drop by 21 (93 octane) and 24 (95 octane) cents per litre. Diesel drivers were hit hard in the most recent round of fuel adjustments earlier this month when prices increased by between 65 (diesel 0.05%) and 82 (diesel 0.005%) cents per litre. Meanwhile, petrol car owners saw a 29 cents per litre hike. The projections come from the Central Energy Fund (CEF), which tracks daily fuel price movements and under-recoveries in the local pricing system.
If the market conditions were to remain consistent for the remainder of the month – an unlikely scenario with the rand/dollar exchange rate fluctuating and the oil price ever changing – a decrease of 21 cents per litre is expected for petrol 93 octane motorists and a decrease of 24 cents for 95 users is anticipated.
The reason for the sudden drop in petrol prices could be the calming down of conflict in oil-producing Middle East countries. Or it could mean such nations are finding new routes away from the chaotic Gulf of Aden to trade oil. Another issue is the abundance of petroleum in these respective regions. Oil has become cheaper as more South African drivers take to the road this holiday season. This might be an opportunity for smoot sailing – or driving – but motorists should obey the rules and drive safely. Petrol and diesel may be at an all time low for consumers but driving responsibly should always be a priority.
As oil prices sink the Rand is growing stronger against the world’s chief reserve currency – the Dollar. The demand is higher for gold due to its value as a safe investment in a turbulent time. With low petrol and diesel prices and gold becoming the priority investment due to high value and price the country must avail this opportunity to deepen diversification of the economy.
The rand was trading at 16.78 against the dollar, which is about 0.6% stronger than its previous close. In the third quarter of 2025, South Africa recorded foreign direct investment outflows of R21.0 billion, a significant decrease from outflows of R73.5 billion in the second quarter, according to central bank data released on Monday. The South African Reserve Bank noted in its Quarterly Bulletin that these outflows were primarily due to Anglo American’s sale of its remaining equity in Valterra Platinum. However, the outflows were partially offset by an increase in foreign shareholding in a media and entertainment company, as French media group Canal+ gained control of South African broadcaster MultiChoice in the third quarter.
On Wednesday, 17 December, the rand was trading at R16.77 to the dollar, R22.46 to the pound and R19.67 to the euro. Oil was trading slightly lower at $59.64 a barrel.
It is indeed fortunate to see an improvement in the Rand against the global reserve currency. The Government of National Unity (GNU) of President Cyril Ramaphosa must seize this opportunity to steer both the nation and the economy in the right direction. The outflows of R 21.0 billion from the sale of equity from Valterra Platinum by the Anglo American shows there needs to be a focus of diversification from the singular US to multiple trading partners. South Africa must not only look outwardly to Asia, the Middle East and Europe but also with in to Africa. Investment in the construction of infrastructure most notably with in the Southern African Development Community (SADC) region should be the top priority.
Trade with in Africa can even stem from focusing trading and investing in oil from African sources. Even going so far as to establish free but fair-trade relations. South Africa must diversify rather than put its eggs all into one basket.
Article written by:
Yacoob Cassim
Journalist at Radio Al Ansaar
