Fuel surge drives freight costs
The October fuel price increase has lifted diesel costs by R2.84–R3.24 per litre from 7 October 2026. Importers will feel the impact in two places: higher fuel surcharges on sea freight and rising cartage rates for moving containers from the port to their premises. Both stem from the same source—a surge in international oil prices linked to ongoing tensions in the Middle East.
Government confirms October fuel adjustments
The Minister of Mineral and Petroleum Resources, Gwede Mantashe, announced the following increases, effective from Wednesday, 7 October 2026:
Diesel (0.05% sulphur): up 284.38 cents per litre
Diesel (0.005% sulphur): up 324.38 cents per litre
Petrol 93: up 312 cents per litre
Petrol 95: up 333 cents per litre
A slate levy of 87.66 cents per litre remains in place to recover the cumulative deficit of R10.45 billion in the fuel price slate—the account that reconciles actual import costs with pump prices.
The impact of global oil tensions
The Minister’s statement attributes the October fuel hike to global market pressures.
The average Brent crude oil price rose from USD 87.89 to USD 101 per barrel during the review period, driven by continued US–Iran tensions, uncertainty over oil flows through the Strait of Hormuz, higher shipping costs, and declining inventories.
International prices for petrol, diesel, and paraffin also climbed due to supply shortages from lower global stock levels. The rand remained largely stable against the US dollar, offering no exchange‑rate relief.
Fuel costs ripple across supply chains
For importers, the October fuel hike translates into two immediate cost pressures. Shipping lines have increased fuel surcharges on sea freight, reflecting higher bunker costs. At the same time, local transporters have raised cartage rates for moving containers, as diesel is their largest operating expense.
Both adjustments stem directly from the surge in international oil prices, meaning importers face higher logistics costs even when local demand and supply remain unchanged.
Gavin Kelly, chief executive of the Road Freight Association, told Freight News that "sometimes the things that cause rate changes are totally out of our control, like fuel." He added that because almost every sector depends on road freight, diesel price changes have "an exponential and far-reaching effect on the logistics industry."
This impact extends beyond cartage from the port to premises—it includes trips to inland depots and cross‑border road freight. Waiting time adds further cost: trucks queuing at Durban Gateway Terminal still incur expenses for transporters, as highlighted in our recent Durban port congestion update.
Managing the impact of rising fuel costs
Importers can take the following steps to limit the impact of rising fuel costs on their supply chains:
Check freight quotes carefully – confirm whether the Bunker Adjustment Factor (BAF) and any emergency fuel surcharge are included or listed separately.
Confirm surcharge dates – ask which date the shipping line applies its surcharges, since rates can change between booking and sailing.
Review transport agreements – look for a fuel clause and check how often it is reviewed.
Recalculate landed costs monthly – fuel prices now adjust on the first Wednesday of each month, so landed costs can shift quickly.
Consolidate shipments where possible – combining orders into fewer, fuller loads spreads fixed freight and fuel charges across more goods.
Plan ahead with SAFS Trading
Rising fuel costs are now a monthly reality for South African importers. SAFS Trading helps importers put these measures into practice—from clarifying surcharge structures to validating transport clauses and recalculating landed costs before each order. With our support, you can plan shipments with confidence and keep fuel price volatility from disrupting your operations.
