Diesel crunch deepens as farmers buckle under fuel supply woes
· Citizen
As South Africans brace for a massive looming petrol price hike, despite repeated assurances from authorities, residents in the Cape Peninsula are already feeling the pinch.
Last week, the department of mineral resources and energy insisted the country’s fuel supply remains stable in the immediate term, despite extreme volatility in global energy markets triggered by escalating geopolitical tensions in the Middle East.
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War
The Fuels Industry Association of South Africa also warned the public against panic buying, stressing that there is no need to stockpile on petrol or diesel.
The United States and Israel’s war in Iran has ignited global panic, with the conflict expected to severely impact fuel prices and supply and businesses across the Garden Route, Klein Karoo and Hessequa which are increasingly feeling the pinch as supply disruptions begin to bite.
Diesel woes
Reports of rationing at service stations and delayed diesel deliveries have raised concern, particularly within the agricultural sector at a critical time in the farming calendar, according to The South Cape Forum.
Chair of Agri Western Cape Laubscher Coetzee said the issue for farmers is about buying ahead of the expected increase, especially as it is currently planting and harvesting season.
Food impact
In addition to diesel, prices of inputs such as fertiliser are also being increased due to the planned rise in fuel and diesel costs.
Fertiliser accounts for about 35%-50% of production costs for grain and other key crops, potentially leading to reduced application rates and lower yields on fertiliser-intensive crops like maize.
This will ultimately lead to higher food prices for consumers.
Diesel shortages
Dean Barnard, a farmer from Waboomskraal near George, said they ordered diesel for their farm early last week and are still waiting for delivery.
“Our orders have been placed, but so far no deliveries have been possible. We approached two separate companies last week, but neither was able to supply the fuel. Hopefully, some diesel will come through somewhere. Until then, we wait.”
Agri Western Cape CEO Jannie Strydom said feedback from farmers shows the issue is more severe than official statements indicate.
“Seventy to 75% of the feedback indicated that they do not have access to fuel,” he said.
In some cases, farmers are reportedly receiving as little as 20% of their usual monthly diesel allocations.
Western Cape government
Western Cape premier Alan Winde said the Provincial Disaster Management Centre is closely monitoring the situation in coordination with industry bodies, including the Fuel Industry Association of South Africa and Agri Western Cape.
“We understand the growing concern around fuel availability, especially as global tensions in the Middle East begin to impact prices and create uncertainty. Let me reassure you: there is currently enough fuel in the Western Cape. However, we are aware of reports of issues in certain areas.
“These are being taken seriously, and we are actively investigating where and why supply disruptions are occurring, engaging with the fuel industry for accurate information and monitoring the impact on key sectors like agriculture and transport,” Winde said.
Winde added that the matter has now been escalated and included in the province’s regular disaster management discussions.
Assurances
Last week, energy department’s spokesperson Lerato Ntsoko said government is actively coordinating with industry stakeholders to secure crude oil and refined petroleum products from a diversified range of sources.
Ntsoko confirmed a comprehensive plan is in place to manage “potential supply risks”.
“Fuel consignments scheduled for March and early April 2026 were secured prior to the recent escalation in global tensions. These deliveries have commenced and are expected to adequately sustain national supply over the coming weeks.”
Fuel prices: latest data
According to the Central Energy Fund’s (CEF) latest March data, petrol and diesel prices are showing massive under-recoveries due to the ongoing war in Iran.
The CEF data show that 93-octane petrol has an under-recovery of 507, while 95-octane petrol has an under-recovery of 562.
Motorists using diesel-powered vehicles face an even steeper hike.
The price of diesel (0.05% sulphur) has an under-recovery of 937, while diesel with (0.005% sulphur) is at 950.
Forecast
If these forecasts remain unchanged, motorists will have to bear the pain of massive hikes on 1 April.
- Petrol 93: Increase of R5.07 cents per litre;
- Petrol 95: Increase of R5.62 cents per litre;
- Diesel 0.05%: Increase of R9.37 cents per litre;
- Diesel 0.005%: Increase of R9.50 cents per litre; and
- Illuminating paraffin: Increase of R11.00 cents per litre.