As fuel prices continue to climb, driven by global oil market volatility and geopolitical tensions in the Middle East, concerns are mounting about the knock-on effects for South Africa’s economy, particularly across the transport and food supply chain. Gavin Kelly, CEO of the Road Freight Association, speaks to Lester Kiewit about how the latest diesel price hikes are expected to push up transport costs almost immediately, with increases of up to 65 cents per litre placing added strain on freight operators. Kelly explains that because diesel underpins most medium and heavy transport, the rising costs will inevitably be passed through the value chain, from production and distribution to retail, meaning consumers will feel the impact at the till. He notes that while some companies may try absorb short-term pressures, sustained increases will force rate adjustments, eroding earlier fuel price gains and adding to inflationary pressures. The conversation also highlights South Africa’s ongoing vulnerability to international energy trends, with Kelly raising critical questions around local fuel production, alternative energy investment, and whether the current fuel levy framework is doing enough to support long-term energy resilience and economic stability.

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