Rabia Mayet | rabiamayet@radioislam.co.za

02 April 2026

3-minute read

Every sector in South Africa has been affected by the unprecedented hike in fuel and diesel prices. The more than R7.00 increase in diesel has South African farmers in a financial squeeze right as winter crop planting begins as prices rise in the agricultural industry.

Compounding the problem is that of unscrupulous diesel sellers pushing the price of the unregulated commodity up even further to make an extra buck. According to head of BDO South Africa’s Sanele Nkosi, “when fuel goes up, everything else in agriculture goes up, because agriculture relies so heavily on fuel prices and fuel itself.” These include factors like the use of fuel in irrigation systems, fuel for transporting crops after harvesting, and even the fuels that ships use when exporting agricultural produce from port to port.

Sanele says that while there is merit in regulating diesel, the reality is that South Africa itself cannot control this, because fuel and crude oil are global-based commodities priced through foreign currency. There might be short-term benefits, but the strain on the agricultural industry will remain, as the industry requires a lot meticulous planning, budgeting and management of cash.

While the exact impact on food pricing has not yet been determined, the immediate impact on agriculture will cause a knock-on sustained effect on food inflation. Sanele points out that adjustments in prices are unlikely, and stabilising may not happen in the longer term as it usually does. Additionally, food inflation will affect food security and the economy, and even taxes in the future.

Basic necessities like transport and taxis will feel the effect immediately. In an ideal world, there should be adjustments in price, but historically, if the fuel price drops, there are little to no reductions in basic commodities, and items of luxury do not get adjusted.

“The war is obviously impacting logistics,” Sanele reiterates, affecting produce and materials coming into and going out of the country. With imports at risks, sustained pressure on and increase of fertilizer costs means that crops that are planted today and will only be harvested by the next season, will have suffered sustained progress of higher costings. However, Sanele concludes that they are hopeful that things will stabilise over time.

Listen to the full interview with Ml Sulaimaan Ravat and Sanele Nkosi here.