Brief
SAPICS warns fuel price hikes will ripple through South Africa’s supply chains
Supply‑chain body SAPICS says the October fuel price rise will increase logistics costs and pressure smaller operators.
By Felo News Desk · Published
South Africa’s October fuel price increase is adding R3.33 per litre to 95‑octane petrol, R3.12 to 93‑octane, and up to R3.24 to diesel, according to a report by Bizcommunity citing the supply‑chain industry body SAPICS.
What happened
The Department of Mineral and Petroleum Resources announced the hikes, noting that Brent crude rose from US$87.89 to US$101 during the review period. Statistics South Africa recorded a 34.3% year‑on‑year rise in fuel prices in June 2026, with diesel up 50.8% and petrol up 31.7%.
What the reports add
Bizcommunity highlights SAPICS director Linda Cham’s explanation that fuel is an input for moving “virtually everything.” She says higher diesel costs affect road freight directly and also increase inbound and outbound logistics expenses for manufacturers, distributors and businesses handling raw materials and finished goods. The report notes that South Africa’s reliance on road freight and long distances amplifies the impact, creating pressure at multiple points in a supply chain rather than a single added charge.
What was said
Linda Cham told Bizcommunity, “Higher diesel costs affect road freight directly, but the consequences can travel much further through the supply chain… When diesel prices rise, the cost of moving goods increases almost immediately.” She added, “Transporters incur fuel costs immediately, while payment cycles may extend for weeks. A sustained increase can therefore become a working‑capital issue, particularly for smaller operators.”
How it came about
The price rise follows a period of rising global oil prices, which the Department attributes to geopolitical tensions. SAPICS warns that the cost pressure could pass to consumers at shop tills as logistics firms pass on higher operating expenses. Smaller logistics firms may face cash‑flow strain, potentially affecting capacity and continuity for downstream businesses.
Key facts
- Motorists now pay R3.33 more per litre for 95‑octane petrol. (bizcommunity.com)
- Diesel prices rose by R2.84 per litre for 0.05% sulphur diesel and R3.24 for 0.005% sulphur diesel. (bizcommunity.com)
- Stats SA reported a 34.3% year‑on‑year increase in fuel prices in June 2026. (bizcommunity.com)
- SAPICS director Linda Cham warned that higher diesel costs could create working‑capital issues for smaller operators. (bizcommunity.com)
Sources
- [1] bizcommunity.com — originally reported as “Fuel price hikes put pressure on South Africa's supply chains”
