HomeIndustry InsightsRFA Welcomes Diesel Price Drop, Warns Freight Industry Relief is Limited

RFA Welcomes Diesel Price Drop, Warns Freight Industry Relief is Limited

The Road Freight Association (RFA) has welcomed the latest fuel price adjustments taking effect on 3 June 2026, but cautions that the overall impact on the road freight industry remains mixed, with several cost pressures still weighing heavily on operators.

While diesel prices have decreased by around R3.25/l for 0.05% sulphur diesel and R2.62/l for 0.005% sulphur diesel, the association says the relief is only partial. Petrol prices, meanwhile, have increased by R1.43/l across both 93 and 95 octane grades, offsetting some of the broader economic benefit.

The RFA notes that diesel remains the most critical input cost for the road freight sector, typically accounting for between 30% and 50% of total operating expenses for long-haul and heavy commercial operators. The recent reduction will provide some breathing room for logistics companies that have been under sustained pressure from elevated fuel costs in recent months.

However, the association warns that structural components within the fuel pricing mechanism are significantly limiting the real-world benefit to operators.

According to the RFA, the slate levy, which is used to recover the cumulative fuel price under-recovery, has increased by R0.35/l to R1.58/l. This adjustment absorbs a notable portion of the international oil price decline that would otherwise have translated into deeper relief at the pump.

In addition, the general fuel levy relief is being reduced, with diesel relief halved to R1.96/l in June, before its expected full removal in July. The RFA says these adjustments further dilute the net savings for operators, meaning the actual cost reduction is far smaller than headline figures suggest.

Beyond fuel pricing, the association highlights that the road freight sector continues to operate in a constrained environment. Infrastructure deterioration, escalating toll fees, ongoing skills shortages, and currency volatility all continue to add pressure to already thin operating margins.

The RFA warns that these combined factors not only affect logistics companies but also have wider economic consequences, including increased consumer prices and reduced freight demand when household budgets come under strain from higher transport-linked costs.

The association has called on the Department of Mineral and Petroleum Resources and National Treasury to develop a credible long-term plan to address the growing slate deficit. It also urges a more structured approach to phasing out fuel levy relief and broader reforms aimed at reducing the sector’s exposure to global oil price volatility.

A stable and predictable fuel pricing framework, the RFA says, is essential for maintaining South Africa’s logistics competitiveness and protecting economic growth.

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Sbu Mzobe
Sbu Mzobehttps://satrucker.co.za/
Sbu Mzobe is an experienced South African journalist specialising in road incidents, traffic safety, and transport reporting. Based in Johannesburg, he has spent years covering accidents, road safety campaigns, and fleet operations, providing accurate and timely information to help drivers and the public stay informed.
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