Global Fuel Prices Plunge To Multi-Year Lows In February

Drivers across the globe are welcoming a rare reprieve at the pump as fuel prices fall sharply in early February 2026, marking a significant shift after years of volatility and rising costs. From South Africa to the United Kingdom, the United Arab Emirates, and the United States, the story is the same: petrol and diesel prices are tumbling to levels not seen in years, bringing relief to consumers and businesses alike, though experts warn the trend may not last.

In South Africa, motorists are set to benefit from the lowest petrol prices since January 2022. According to IOL Motoring, the Minister of Mineral and Petroleum Resources has announced a petrol price cut of around 65 cents per litre, while diesel will fall by between 50 cents (500ppm) and 57 cents (50ppm), effective Wednesday, February 4. This will bring the price of 95 Unleaded down to approximately R19.27 at the coast and R20.10 in Gauteng, with the more affordable 93 Unleaded retailing at R19.99. The wholesale price of 50ppm diesel will drop to R17.19 at the coast and R17.95 inland.

These reductions follow January’s decreases of up to 66 cents for petrol and R1.50 for diesel. The driving force behind these cuts? A stronger South African rand, which averaged R16.31 to the US dollar during the latest review period, down from R16.85 previously. This improvement in the currency, buoyed by a more reliable electricity supply, improved business confidence, and a robust agricultural harvest, helped South Africa’s economy expand by about 1.3% in 2025, as reported by the World Bank.

However, the international oil market remains volatile. Brent crude oil, which surged to $68 late last week, slipped to $64.95 on Monday, February 2, after comments from former US President Donald Trump signaled easing tensions between the US and Iran. If such volatility continues, it could threaten the fuel price-cutting cycle that South Africans are currently enjoying.

Across the Atlantic, UK drivers are experiencing their own relief. The RAC, cited by Bodyshop Magazine and Visordown, reports that petrol prices have dropped to 131.91 pence per litre—the lowest since July 2021—after falling by more than 3p in January. Diesel prices have also dipped, averaging 140.97p per litre, below the highs seen in early December. RAC’s head of policy, Simon Williams, described this as “a genuine boost for drivers,” but he also pointed out that prices could have fallen further if retailers had passed on more of the wholesale savings. “Our analysis of RAC Fuel Watch data also shows a similar picture of retailer margins. So, had retailers passed on more of the savings they’ve benefitted from when buying new fuel supply on the wholesale market, the January price reductions would probably have been bigger,” Williams said.

Despite these price drops, the Competition and Markets Authority (CMA) in the UK has flagged that retailer margins remain “persistently high,” with the CMA’s 2025 annual road fuel monitoring report confirming that increased operating costs do not justify these elevated margins. To address this, a “fuel finder” scheme is set to launch in 2026, aiming to help drivers compare prices in real time and boost competition among retailers.

The global oil market continues to play a pivotal role in these trends. Brent crude dropped sharply by 4.9% to $65.94 a barrel on Monday, February 2, following Trump’s remarks that Iran was “seriously talking” with Washington, which eased fears of a confrontation and reduced the “risk premium” in oil prices, according to Reuters. OPEC+, the coalition of OPEC members and allies like Russia, has decided to hold production steady through March, leaving all options open for the months ahead. Jorge Leon of Rystad Energy noted the absence of signals beyond March as particularly noteworthy.

Meanwhile, in the United Arab Emirates, the Fuel Price Committee has approved new rates for February 2026, reflecting a notable easing in fuel costs at the start of the year. Diesel will be sold at AED2.52 per litre, Super 98 at AED2.45, Special 95 at AED2.33, and E-Plus 91 at AED2.26. These rates follow the largest monthly reduction in fuel prices in over a year, with January’s prices marking a significant shift after a year of volatility. Since March 2021, the UAE has adjusted fuel prices monthly in line with international crude oil prices, meaning local pump costs closely track global supply and demand, as well as geopolitical events. As Oil & Gas Middle East noted, the recent downward momentum offers temporary relief, but uncertainty around supply growth, geopolitical risk, and demand expectations means motorists and businesses are watching closely.

In the United States, South Carolina drivers are also seeing lower prices. According to WIS, gas prices in the state fell by nearly 10 cents compared to the previous week, with the average price now at $2.53 per gallon. In the Columbia area, prices dropped by 11 cents to $2.49 per gallon, based on a survey of 350 gas stations. While the price is just over a cent higher than a month ago, it’s nearly 20 cents per gallon cheaper than the same time in 2025. Nationally, the average price of gas fell nearly a cent in the past week to $2.83 per gallon, and diesel dropped to $3.86 per gallon.

Patrick De Haan, head of petroleum analysis at GasBuddy, explained, “While oil prices jumped to their highest level in months amid geopolitical tensions, a weakening U.S. dollar, and supply concerns, the national average price of gasoline saw little change compared to a week ago.” This underscores the complex relationship between crude oil prices, currency fluctuations, and pump prices.

What’s driving this global trend? The answer is a mix of stronger local currencies, easing geopolitical tensions, stable or falling international oil prices, and—at least in some regions—a willingness by authorities to intervene or encourage competition. Yet, as many analysts and officials caution, these lower prices may not last if oil markets turn volatile again or if retailers decide to increase their margins. The launch of new tools like the UK’s “fuel finder” scheme may help consumers secure better deals, but the underlying forces shaping pump prices remain as unpredictable as ever.

For now, drivers from Johannesburg to London, Dubai to Columbia, S.C., are enjoying a welcome break from high fuel costs. The coming months will reveal whether this relief is a fleeting dip or the start of a more stable era for global fuel markets.