JOHANNESBURG – South Africa’s logistics sector is bracing for a wave of price adjustments following the March 2026 fuel price hike, which saw diesel climb by as much as 65 cents per litre. The Road Freight Association (RFA) has cautioned that the immediate increase in input costs for medium and heavy commercial transporters will inevitably filter through to the retail shelf, threatening to erase recent inflationary gains. As geopolitical volatility in the Middle East pushes Brent Crude above $80 a barrel, industry leaders are calling for a fundamental rethink of South Africa’s energy sovereignty to insulate the domestic economy from global shocks.
The current pricing structure, dominated by international crude costs and a fluctuating Rand, has left the country’s supply chain vulnerable. With the closure of several local refineries in recent years, South Africa is now more dependent than ever on imported finished petroleum products. Gavin Kelly, CEO of the RFA, argues that the “paradox of plenty”—being a coal-rich nation with a history of synthetic fuel innovation—makes the current reliance on foreign imports a strategic failure that must be addressed through a return to domestic production capabilities.
“South Africa certainly cannot continue to remain vulnerable to international fuel prices when it has both the means and the ability to fairly quickly, and reasonably affordably, build the infrastructure to secure its own energy (fuel) needs,” says Gavin Kelly. He notes that while the March increase of 20 cents for petrol and up to 65 cents for diesel is significant, “really frightening figures” are already being projected for April should the current trajectory of international under-recovery and currency weakness persist.
Central to the RFA’s proposal is a revival of the country’s synthetic and alternative fuel sectors. Kelly points to the historical success of Sasol and the World War II-era ethanol programs as blueprints that could be modernized to create a self-sufficient energy mix. The association is urging the government to incentivize large-scale investment in green hydrogen, battery-driven commercial vehicles, and the expansion of the biofuels industry—a move that would not only stabilize fuel costs but also revitalize the struggling sugar industry and generate significant employment.
The fiscal role of the General Fuel Levy has also come under intense scrutiny as transporters face tightening margins. Currently treated as general income for the fiscus rather than a ring-fenced fund for road infrastructure, the levy is seen by the RFA as a missed opportunity for strategic reinvestment. The association is calling for a freeze on levy increases and a comprehensive review of the Regulatory Accounting System (RAC) to ensure that the taxes paid by road users are channeled into developing sustainable, domestic energy solutions.
As transport companies weigh the decision to hike freight rates or absorb the shocks through diminishing reserves, the broader economy stands at a crossroads. The RFA warns that if the state does not pivot toward energy self-sufficiency and logistics-led growth, the “inevitable” rate adjustments will continue to act as an upward inflationary force. For Business Times readers, the message from the logistics frontline is clear: the era of reactive fuel pricing must end in favor of a proactive, infrastructure-led energy strategy.
