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RFA welcomes diesel reduction but warns of ongoing pressure on the road freight industry

RFA welcomes diesel reduction but warns of ongoing pressure on the road freight industry

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Petrol has gone up once again in South Africa, while diesel has gone down

South Africans are experiencing mixed reactions following this week’s petrol price increase, while diesel prices have decreased. 

The Road Freight Association (RFA) expressed approval of the new fuel prices, effective June 3, 2026. “The reduction in diesel prices—approximately R3.25 per litre for 0.05% sulphur diesel and R2.62 per liter for 0.005% sulphur diesel—is a welcome, albeit partial, relief for long-haul freight operators. However, we are concerned that petrol prices have risen by R1.43 per litre for both 93 and 95 octane grades. Overall, this is a mixed announcement that warrants closer examination,” said Gavin Kelly, CEO of the RFA.

Diesel is crucial to the road freight sector, accounting for 30% to 50% of a typical operator’s total costs. The decrease in diesel prices will provide some relief to operators who have been struggling with rising costs in recent months. Unfortunately, lighter commercial fleets, company vehicles, and daily commuters continue to be burdened by the consistently increasing petrol prices.

Gavin Kelly, RFA CEO. Picture: Supplied.

“The RFA urges caution regarding the reported diesel savings, as two structural factors significantly diminish the benefit. First, the slate levy—a surcharge intended to recover the R18.28 billion cumulative under-recovery in the fuel pricing system—has increased by R0.35 to R1.58 per litre, offsetting a substantial portion of the international price reduction. Second, the general fuel levy relief will be cut in half to R1.96 per litre for diesel in June, with a complete removal anticipated in July. Together, these factors mean the net benefit to operators, and consequently the reduction in financial pressures on the broader economy, is much smaller than it initially appears,” Kelly explained.

He also urged the Department of Mineral and Petroleum Resources and the National Treasury to develop a credible, long-term plan to address the growing slate deficit. Furthermore, he emphasised the need to manage the withdrawal of fuel levy relief in a structured way and to pursue reforms that would reduce the sector’s vulnerability to external price fluctuations.