South African agricultural bodies AgriSA and Agbiz on Tuesday welcomed the Government’s temporary reduction of the general fuel levy, describing it as timely relief for producers and consumers amid rising cost pressures.
The development comes as fuel prices are expected to increase in April, with petrol projected to rise by about five rand per litre and diesel by up to 10 rand per litre, placing additional strain on the economy. While authorities have assured stable fuel supply for April, the organizations noted that surveys among farmers and fuel retailers reveal emerging supply constraints and operational uncertainties at the farm level.
They said the three rand per litre levy cut—estimated to provide around six billion rand in relief—would offer short-term support, particularly as fuel constitutes between 12 and 18 percent of production costs in most farming systems. However, the groups cautioned that deeper challenges persist, including rising input costs and supply disruptions ahead of key winter and summer grain production seasons.
AgriSA and Agbiz therefore urged Government to implement broader interventions, including improving market responsiveness, ensuring consistent fuel supply, increasing transparency on fuel stock levels, and extending the diesel rebate for primary users to 100 percent.
They also endorsed plans to review the fuel pricing framework and introduce medium-term reforms to address structural inefficiencies and strengthen critical sectors such as agriculture.