Transport costs are starting to decrease, and the benefits of this will eventually benefit consumers, Road Freight Association (RFA) CEO Gavin Kelly indicates.

On November 5, the cost of diesel for transporters decreased by 21c/ℓ for 500 ppm; and the price of both grades of petrol (93 and 95) decreased by 39c/ℓ.

The Central Energy Fund attributed the lower prices to an appreciating rand against the dollar. This has directly led to lower basic fuel prices on petrol, diesel and illuminating paraffin, Kelly points out.

He explains that this means that transport costs are becoming less expensive from the incredible highs seen during the year, but fuel prices are still 21.4% higher than what they were this time last year.

“We have a long way to go to bring the cost of logistics down to a far more palatable (and sustainable) level,” Kelly cautions.

He points out that the realities of how transporters acquire diesel, how this is paid for and the delays in being paid for the work done still remain true. “There will be less pressure on the guarantees and daily refuelling cycles.”

“In a simple scenario, a truck with two 500 ℓ fuel tanks will now pay R820 less for every complete refuel (for 500 ppm diesel). When this is multiplied by the number of vehicles and trips (refuels) a transporter has, the savings add up and release pressure on cash flow.

“Fuel was at the 41% mark in daily operating costs during the third quarter of the year and now, as we head into the final month of 2025, this should head back below the 40% mark. That is extremely good news – but we need it to drop further,” Kelly avers.

He says the resultant downward pressure on transport prices will also begin to flow through the logistics supply chains, adding that some price relief for consumers will take longer than others – depending on stock on shelves at previous transport rates and the types of transport service contracts between clients and retailers.

Kelly explains that the continuous increases in the price of diesel have driven the cost of transport and logistics to very high levels. With about 85% of all goods moved through and around the country having a road leg at some part in the journey, the recent set of fuel price decreases will nonetheless take some time to be felt by consumers as the cost to transport goods slowly decreases.

He does indicate, however, that there should be some immediate consumer relief at retail points – however, as fuel continues to decrease in price, that effect will be felt by the consumer.

“You and I will pay less for everyday goods – from food to fuel, from clothing to electronic goods and everything in between. As fuel prices start to fall, a domino effect will ensue, hopefully the first in a long line of such domino effects that will bring about a steady decrease to the ‘cost of living’ as regards consumer items,” Kelly posits.

“The bigger effect of falling fuel prices and retail process, is that the basket of goods used by the Reserve Bank to alter the repo rate will reflect a different picture/value of the inflation monster, and this will bring about a better financial experience for consumers.

“Continued and sustained fuel price reductions will definitely have an effect on inflation,” he adds.

Kelly also mentions that the recent GDP figures show a better picture than expected and that the trend in fuel prices will help bolster these figures.