Diesel Cost Surge of 32.5% Puts Road Freight Sector under Immense Pressure
By Gavin Kelly – CEO of the Road Freight Association.

For the road freight industry - the daily basic diesel cost rose by 32,5% today.

That's an increase of 32,5% of a basic cost input that is between 35% and 55% - depending on the vehicle type used, routes used, congestion, working conditions and fuel consumption.

Whilst not being raised by R10 per litre - the R3 that is being "decreased in the fuel levy" definitely helps - but it will come back in some form or another.

Road freight operators are under immense pressure. There are no guarantees that clients will pay the new transport rates - and transporters are in the business of making money, not in the business of making a loss.

Access to cash reserves to pay for high fuel costs is every transporter's worry - where to find the funding for day-to-day operations or guarantees with fuel suppliers.

Consumers will start feeling the pinch of high fuel prices within a couple of weeks - and fuller impact will filter through towards the end of April.

The spectre of further fuel increases remains a reality and threat to all operators.