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Fuel prices have increased. Here’s how businesses can manage the impact
With fuel prices having increased again, many South African businesses are facing higher operating costs.
With fuel prices having increased again, many South African businesses are facing higher operating costs. If your business relies on vehicles, deliveries or transport, this could be a good opportunity to review the costs you can control, including your insurance.
How petrol price increases impact South African businesses
From 7 October 2026, petrol 95 increased by R3.33 per litre, petrol 93 by R3.12 per litre, while diesel increased by between R2.84 and R3.24 per litre. The increases were driven largely by higher international crude oil and petroleum product prices.
For businesses that depend on vehicles, deliveries and road transport, the impact can quickly extend beyond the fuel bill.
According to Road Freight Association CEO Gavin Kelly, fuel can account for 35% to 55% of operating costs for logistics companies, depending on the operation, routes and vehicles involved.
So, what can your businesses actually do?
You can't control the price of fuel. But you can look for ways to reduce the impact it has on your bottom line.
Area's worth reviewing to navigate the petrol price increase.
Understand the true cost of the petrol price increase
Before making cuts, understand exactly what the increase means for your business.
Look at your average monthly fuel consumption and compare it with what you were spending before the increase.
For example, if your business uses 5 000 litres of diesel a month, an increase of R3 per litre represents approximately R15 000 in additional monthly fuel costs.
That number gives you something useful to work with.
Once you know the size of the problem, you can start looking at where to recover some of that additional cost.
Find the kilometres that aren't making you money
For businesses that rely on vehicles, not every kilometre is equally valuable.
Look at:
- Empty return trips
- Unnecessary journeys
- Poorly planned delivery routes
- Multiple vehicles covering the same areas
- Deliveries that could be consolidated
Small inefficiencies become more expensive when fuel prices rise. A route that was marginally profitable six months ago may now be costing more than it earns. The goal isn't simply to use less fuel. It's to get more value from every kilometre you travel.
Review your pricing
If your operating costs increase but your prices don't, your margins absorb the difference. This is particularly important for businesses that provide deliveries, transport or field services.
Review your current pricing and ask:
- When did we last adjust our rates?
- Are fuel costs built into our pricing?
- Which customers or routes have the lowest margins?
- Are our delivery fees still appropriate?
- Can deliveries be consolidated?
- Do existing contracts allow for cost adjustments?
You don't necessarily need to increase prices across the board, but you should know where the additional cost is going to come from.
Review your other operating costs
Fuel may be the immediate problem, but it's an opportunity to look at the rest of the cost base too. Go through your major recurring expenses and ask a simple question:
Are we still getting enough value from what we're paying for?
That could mean reviewing:
- Vehicle maintenance
- Tyres and repairs
- Vehicle financing
- Supplier agreements
- Warehouse and storage costs
- Insurance
You don't have to cut everything. The objective is to identify expenses that can be reduced, renegotiated or better aligned with the way your business operates today.
Don't overlook your insurance
Insurance is often treated as a fixed business expense, but your business isn't fixed. You may have added or removed vehicles, changed how they are used, reduced or expanded your fleet, or changed the way your business operates. That makes an insurance review worthwhile.
Miway's Business insurance checklist 101 recommends reviewing business insurance annually to identify potential ways to reduce costs without compromising the cover your business needs.
The objective shouldn't be to simply buy the cheapest insurance, It's to make sure you're not paying for unnecessary cover while still protecting the things your business depends on.
Make sure your vehicle cover matches your business
For businesses that rely on vehicles, insurance is particularly important because the wrong cover can create another unexpected cost when something goes wrong.
Miway Business Vehicles & Fleet Insurance caters for businesses ranging from those with a single work vehicle to those operating fleets of cars, bakkies, vans and trucks. Businesses can select cover according to their needs, with options available for things such as vehicle hire, loss of use and credit shortfall.
That doesn't mean every business needs every option, it means your insurance should reflect how your business actually operates.
Higher fuel costs make every business expense worth revisiting.
Miway Business Insurance offers flexible cover across areas including vehicles and fleets, property, goods in transit, liability and business interruption. Review your current cover and see whether it still gives your business the protection it needs at a price that makes sense.
