Diesel is one of the largest expenses for transport operators, making up between 35% and 55% of total operating costs depending on the type of vehicle and routes used.<\/p>\n\n\n\n
As a result, a sudden increase has a direct impact on margins. The price hike is placing a strain on cash flow. Transport companies typically pay for fuel upfront, while payments from clients can take weeks or months.<\/p>\n\n\n\n
This creates a funding gap that businesses must manage through reserves or credit. Kelly said access to working capital has become a key concern, particularly for smaller operators.<\/p>\n\n\n\n
Companies without sufficient financial buffers are more vulnerable to cost increases. Some may need to reduce operations if expenses cannot be recovered through higher tariffs. <\/p>\n\n\n\n
Kelly noted that even larger operators are also reviewing their cost structures and looking to limit spending where possible.<\/p>\n\n\n\n
Further diesel price increases are expected in the coming months. Forecasts from the Central Energy Fund indicate that diesel prices could rise by around R10 per litre in May.<\/p>\n\n\n\n
This would add additional pressure on transporters, particularly if temporary government relief measures, such as the R3 fuel levy adjustment, are not extended.<\/p>\n\n\n\n
Kelly said that could spell the end for some of the 2,500 companies represented in the Road Freight Association in South Africa.<\/p>\n\n\n\n
He added that whatever is coming will likely be catastrophic and noted that some businesses will likely close within a week or two following the increase.<\/p>\n\n\n\n
Another important industry is feeling the pain<\/h2>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2026\/04\/farming-1024x576.jpg\")
<\/a><\/figure>\n\n\n\nFarmers are also under severe pressure. The Minister of Mineral and Petroleum Resources, Gwede Mantashe, assured the country that supply is not an issue at the moment. <\/p>\n\n\n\n
Mantashe said there was no overall shortage of fuel in South Africa, and that he does not expect one.<\/p>\n\n\n\n
However, reports from across the country suggested that many filling stations and wholesalers were struggling to source diesel.<\/p>\n\n\n\n
The Fuel Retailers Association (FRA) confirmed isolated supply issues, largely due to delays in distribution rather than a national shortage.<\/p>\n\n\n\n
Despite this, agricultural groups report that access to diesel remains inconsistent. Agri Western Cape CEO Jannie Strydom said feedback from farmers indicated supply is a big issue. <\/p>\n\n\n\n
The feedback noted that many are struggling to secure a sufficient supply. In some instances, farmers are receiving only a portion of their usual diesel allocations.<\/p>\n\n\n\n
<\/a><\/figure>\n\n\n\nFarmers are also under severe pressure. The Minister of Mineral and Petroleum Resources, Gwede Mantashe, assured the country that supply is not an issue at the moment. <\/p>\n\n\n\n
Mantashe said there was no overall shortage of fuel in South Africa, and that he does not expect one.<\/p>\n\n\n\n
However, reports from across the country suggested that many filling stations and wholesalers were struggling to source diesel.<\/p>\n\n\n\n
The Fuel Retailers Association (FRA) confirmed isolated supply issues, largely due to delays in distribution rather than a national shortage.<\/p>\n\n\n\n
Despite this, agricultural groups report that access to diesel remains inconsistent. Agri Western Cape CEO Jannie Strydom said feedback from farmers indicated supply is a big issue. <\/p>\n\n\n\n
The feedback noted that many are struggling to secure a sufficient supply. In some instances, farmers are receiving only a portion of their usual diesel allocations.<\/p>\n\n\n\n