Diesel price cut offers relief to freight sector, but challenges remain

The freight and logistics sector expects some relief after a drop in both grades of diesel on Wednesday.

– South Africa's freight and logistics sector has welcomed the sharp decline in diesel prices that took effect on Wednesday, providing some relief to transport operators after months of escalating fuel costs.

However, industry leaders warn that structural challenges and global uncertainties continue to threaten the sustainability of the sector.

The latest fuel price adjustment saw the wholesale price of diesel decrease by approximately R3.25 per litre for 0.05% sulphur diesel and R2.62 per litre for 0.005% sulphur diesel, following steep increases recorded in April and May amid higher international oil prices.

Gavin Kelly, CEO of the Road Freight Association described the reduction as a positive development for long-haul freight operators, whose profitability is heavily influenced by fuel costs.