South Africa Faces Diesel Sales Restrictions Amid Rising Prices
Several agricultural companies in South Africa have begun to limit daily diesel sales to farmers as fuel prices continue to soar. Oos-Vrystaat Kaap (OVK) Limited has closed its diesel ordering book at distribution points, citing price increases from fuel suppliers as the primary reason for this decision.
Starting from March 11, 2026, VKB Group has limited purchases at its stations to 80 litres per customer per day. This restriction comes as the wholesale price of diesel 50ppm is expected to increase by R6.02 in April 2026, potentially pushing the inland wholesale price of diesel to R25.75 per litre, a level last seen in October 2022.
Diesel prices in South Africa are unregulated, allowing sellers to set their own profit margins. This has raised concerns among farmers, particularly as a combine harvester can consume between 300 to 600 litres of diesel over a typical harvesting day. With the maize harvesting season set to begin in April and fruit harvesting occurring between January and May, these restrictions could significantly impact agricultural productivity.
OVK stated, “The closure was only temporary to allow for an analysis of the situation in the Middle East,” indicating that the current fuel supply issues are linked to broader geopolitical tensions. VKB has also noted that importers and suppliers have indicated that delays in fuel imports will last for the next four to six weeks, with volumes destined for South Africa likely to be lower than normal.
Observers are concerned that as fuel prices rise, food prices may follow suit. One industry expert remarked, “First fuel goes up, then food prices follow.” This cascading effect could exacerbate the challenges faced by consumers already grappling with rising living costs.
Currently, the oil price per barrel stands at R90, but if tensions escalate, it could potentially reach R200. The Department of Mineral and Petroleum Resources (DMPR) has not yet confirmed the final fuel price adjustments for April, which depend on future oil prices and exchange rates.
Details remain unconfirmed regarding the exact duration of the diesel restrictions, but the decision by OVK is set to be reviewed on Thursday. As the situation develops, stakeholders in the agricultural sector are closely monitoring the implications of these fuel restrictions on their operations.
