SA Now Ranks 7th Highest in Africa for Petrol Prices as Logistics Costs Surge to R1.156 Trillion

Fuel price concerns continue to mount amid news that South Africa's total logistics expenditure is projected to reach R1.156 trillion this year (14.6% of GDP), an increase of R147 billion from 2025. 

It also emerged this week that South Africa has climbed up the GlobalPetrolPrices index, now having the 7th most expensive petrol price in Africa and 58th on the global index of about 170 countries.   

The diesel price typically follows a similar price trajectory. 

Freight stakeholders this week said the upcoming fuel price relief confirmed last week by the Finance Minister has done little to dispel concerns about price impacts on logistics and retail prices.  

"Fuel accounts for approximately 43% of road freight operating costs in South Africa, around 25–30% in ocean shipping, and approximately 31% of global airline operating costs," commented Dr Jacob van Rensburg, head of research and intelligence at the Southern African Association of Freight Forwarders.  "These are indicative operator-level figures, but they demonstrate why rising fuel prices have such a pronounced impact on the movement of goods. For road freight, a 10% increase in diesel prices can translate into an approximately 4.3% increase in operating costs, all else being equal." 

"From our perspective, the Minister's temporary fuel-levy relief is welcome, particularly the R3/litre reduction for diesel (not immediate; taking effect on 4 Nov…). However, it is precisely that: temporary relief. The bigger opportunity lies in improving overall logistics efficiency through more reliable infrastructure, better utilisation, improved port and rail performance, and ultimately moving freight through the system at a lower total cost," Van Rensburg said. 

The latest logistics expenditure stats are contained in the State of Logistics 2026 report, compiled by GAIN Group and released earlier this month. 

Gavin Kelly, CEO of the South African Road Freight Association, said the Association's research indicated SA fuel was significantly more expensive than some of its neighbours, including Botswana and Mozambique.  Partly this was due to state levies of R6.35 per litre total (made up of R4.10 General Fuel Levy + R2.25 Road Accident Fund levy, plus carbon charges).  

Another well-placed logistics source, who requested anonymity, questioned the rationale behind the relatively high government levy: "It begs the question, what costs are the fuel levies covering that the government cannot do away with them?  Fuel is just an easy target to levy as our government will not allow the private sector to sell fuel. Food for thought."