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The reference media of supply chain in Africa.

South Africa: rising fuel prices threaten logistics costs

By: Drafting

10 / 15

Since 7 October 2026, fuel prices in South Africa have risen sharply, with an increase of 3.33 rands per litre for 95 petrol and up to 3.24 rands for diesel. Supply chain professionals warn about possible impacts on road transport, distribution and small businesses.

This increase comes in a context of rising international oil and petroleum prices. According to the South African Ministry of Mineral and Petroleum Resources, the average price of Brent's barrel increased from $87.89 to $101 over the reference period.

Tensions between the United States and Iran, uncertainties in oil flows through the Strait of Ormuz, rising shipping costs and declining stocks are among the factors that have emerged.

The consequences directly affect carriers, particularly those exposed to diesel, whose price rose from 2.84 rands per litre for fuel to 0.05% sulphur and from 3.24 rands to 0.005%.

For the SAPICS supply chain professional association director Linda Cham, the shock exceeds the cost of transportation.

The increase in diesel is affecting road operations, as well as industrial supply costs, deliveries to distributors and the delivery of finished products.

Agriculture, port handling and other activities using diesel equipment are also involved.

Carriers must also immediately finance fuel while their customers can pay their bills several weeks later. This situation may weaken the cash flow of small transport enterprises and, if it continues, may affect the continuity of logistics services.

In response to this situation, SAPICS recommends that companies better measure their exposure to changes in fuel prices, optimize itineraries, vehicle filling and delivery schedules, and limit unladen journeys and unnecessary handling.

The association also insists on coordination between suppliers, manufacturers and logistics providers. For its part, the Township Entrepreneurs Alliance calls for targeted aid and easy access to cash financing for small businesses.

The extent of the impact on prices and economic activity will depend in particular on the duration of the increase and the ability of companies to absorb these costs without reducing their operations or transferring them entirely to consumers.

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