RFA welcomes diesel reduction but warns of ongoing pressure on road freight industry
The Road Freight Association (RFA) acknowledges the fuel price adjustments effective 3 June 2026. While the reduction in diesel prices — approximately R3.25/l for 0.05% sulphur diesel and R2.62/l for 0.005% sulphur diesel — is a welcome, if partial, reprieve for long-haul freight operators, the RFA notes with concern that petrol prices have increased by R1.43/l across both 93 and 95 octane grades. Taken together, this is a mixed announcement that deserves closer scrutiny.
Diesel is the lifeblood of the road freight sector, accounting for between 30% and 50% of a typical operator's total cost base. The diesel decrease will provide some relief to operators of heavy commercial vehicles, who have absorbed elevated fuel costs over recent months. However, the petrol increase will be felt across lighter commercial fleets, company vehicles, and — critically — by employees whose commuting costs directly influence wage expectations. When household budgets are under pressure from rising petrol prices, the knock-on effects on consumer spending and freight demand are real.
The RFA urges caution on the headline diesel saving, as two structural factors significantly dilute the benefit. The slate levy — a surcharge applied to recover the R18.28 billion cumulative under-recovery in the fuel pricing system — has increased by R0.35/l to R1.58/l, absorbing a meaningful portion of the international price reduction. Additionally, the general fuel levy relief is being halved to R1.96/l for diesel in June, with full removal expected from July. Together, these factors mean the net benefit to operators - and therefore the reduction on fiscal pressures through the greater economy - is considerably smaller than it first appears.
More broadly, the road freight industry continues to navigate a challenging operating environment. Poor road infrastructure, rising toll costs, skills shortages, and currency volatility all compound the fuel pricing challenge. South Africa's logistics competitiveness — and the cost of living for ordinary citizens — depends on a stable, predictable, and equitable fuel pricing framework.
The RFA calls on the Department of Mineral and Petroleum Resources and National Treasury to address the growing slate deficit with a credible long-term plan, to manage the withdrawal of fuel levy relief in a structured manner, and to pursue reforms that reduce the sector's vulnerability to external price shocks.
By Gavin Kelly, CEO of the Road Freight Association
Gavin Kelly, CEO of the Road Freight Association
Issued by
Name: CVLC Communication
Contact: Catherine Larkin APR CMILT
Cell phone: 083 300 0331
Contact: Catherine Larkin
Email:
Website: www.rfa.co.za
About The Road Freight Association
The Road Freight Association was established in 1975 to support its Members who are, in the main, road freight operators. It is a lobbying and negotiating body which influences the state of the industry, rates, upkeep of the road infrastructure, road safety, freight security, driver interests, cross-border transport, education, health, the fuel price, law enforcement, labour relations and many other issues related to road freight transport.
Member companies include small and medium-sized trucking companies, including many family-owned businesses, owner operators, as well as most of the largest trucking companies in South Africa. Members come from all sectors of the trucking industry.
Private and public operators are Members of the RFA. Membership also includes a significant number of affiliates and associates – those companies providing goods and services to the trucking industry.
Team RFA (made up of support staff and experts) is committed to serving you. The team brings with it a high degree of professional experience, knowledge and dedication – which greatly contributes to the effectiveness, relevance and standing of the RFA.
As the voice of the trucking industry in South Africa, the RFA is your voice. It is important that you avail yourself of that opportunity to be heard.
