How South African businesses can offset the rising diesel price

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Firstly, fuel price volatility is eroding profits in these industries, some of which already have very thin margins.

Secondly, the South African Revenue Service (SARS) is changing the diesel rebate process to maximise service delivery and compliance.

The whole system is being migrated to a standalone digital platform, separate from VAT returns.

Future claims, including fuel‑levy refunds, will be validated through automated checks that require clean, consistent operational data.

Companies are struggling to comply with these requirements, which may delay refunds or lead to refunds being rejected, with interest and penalties.

Thirdly, operational transparency is becoming essential.

Increased fuel prices affect how mined ore is transported, which equipment can be moved, and when deliveries can be made to ports.

Add criminal activity to the mix, and AgriSA has warned that diesel theft and unexplained losses are threatening food security.

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Here are three ways companies can manage these challenges:

1. Digital tracking and reporting

Sectors across the economy are modernising their operational data systems in response to tightening regulatory expectations.

Mining is adopting digital reporting frameworks aligned with the DMRE’s transparency requirements, agriculture is digitising record‑keeping to meet DALRRD traceability standards, and transport and logistics are shifting to telematics‑based reporting to strengthen safety and compliance.

This momentum toward automation is accelerating because it removes human error, delivers consistent audit‑ready data, links diesel usage to specific assets and activities, and reduces administrative load.

2. Accurate diesel rebate claims

For qualifying primary producers (farming, forestry, mining) operating on land, the refundable portion of diesel was increased to 100% of the fuel levy (up from 80% previously) late in April.

This can currently amount to as much as R3.82 a litre rebate, depending on the industry and activity of the fuel user.

Against the primary cost of over R30 a litre, in businesses that buy thousands of litres of diesel each financial year, that’s a big cash flow problem solved through accurate data.

However, companies need to have operational data maturity to substantiate diesel usage with confidence.

That means clean, consistent, automated fuel‑usage data, with a clear link between diesel consumption and qualifying activities.

Companies also have to maintain audit‑ready digital trails, phase out manual logs and spreadsheets, and use systems that can adapt as SARS’s requirements evolve.

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3. Use data

IoT-enabled fuel probes and smart pumps provide real-time visibility into fuel levels and dispensing, preventing overfilling, underfilling, and unauthorised access.

Immediate alerts on abnormal consumption help detect fuel theft or leakage.

Telematics systems analyse driving habits such as excessive idling, speeding, and harsh braking, which are major causes of wasted fuel.

This data allows managers to implement targeted driver training to encourage fuel-efficient driving practices.

The fuel consumption data gathered by IoT devices helps to identify underperforming equipment.

Abnormal fuel consumption can signal mechanical issues, like clogged filters or engine wear, before they cause breakdowns, enabling proactive maintenance.

Data on routes, speed, and fuel consumption can be used to avoid traffic or difficult terrain, and hence reduce fuel usage.

In addition, by cross-referencing data like output against activities, run-time and fuel usage, companies can better understand where they can remove wastage.

In light of recent issues around diesel scarcity, the ability to limit wastage and proactively plan stock ordering is another benefit of using a digital system.

Better data is no longer just a compliance requirement — it is a financial and operational safeguard.