The 50-year-old Peterhansel avoided any late drama to safely cross the finish line of the closing 13th stage at Rio Cuarto to give French manufacturer Peugeot their first win since 1990.
Price, 28, who came third last year on his debut, dominated the two-week bike race after lifting the second stage last week.
The rider from New South Wales finished fourth on the final day to wrap up the title and supply his KTM team with a 15th consecutive crown.
The Dakar’s all-time record winner, Peterhansel made what ultimately proved to be a decisive step towards the 2015 title on Thursday’s drive from Belen to La Rioja.
With his Peugeot teammate Carlos Sainz coming to a grinding halt 30 kilometres from the line, he ended the day a full one hour clear of last year’s winner Nasser Al-Attiyah behind the wheel of a Mini.
Dakar King @s_peterhansel wins his 12th Dakar / gana su 12do Dakar y sigue siendo el rey del Dakar! #Dakar2016 pic.twitter.com/SLugvAc6XK
— DAKAR RALLY (@dakar) January 16, 2016After safely coming in ninth behind final stage winner Sebastien Loeb, Peterhansel took the title with over half an hour to spare from Qatari Al-Attiyah.
South African Giniel De Villiers driving a Toyota took third over an hour adrift.
Peterhansel’s love affair with rallying’s Everest began in 1988.
He won the first of his six titles on two wheels in 1991 and his 11th victory behind the wheel of a Mini in 2013.
In the bike standings Price had a tidy 39-minute cushion over his Slovakian teammate Stefan Svitko with Chilean Pablo Quintanilla at 48min in third.
