Rising fuel prices are adding to the cost of moving goods through South Africa’s grocery supply chains. For retailers, the challenge is managing distribution and energy costs while keeping shelves stocked and deliveries reliable.
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Fuel accounted for between 35% and 55% of road freight operators’ operating costs, depending on vehicle type and route, according to the Road Freight Association. Higher fuel prices can therefore put pressure on the cost of moving goods from suppliers to distribution centres and stores.
The pressure comes as Statistics South Africa’s September 2026 Consumer Price Index showed annual transport inflation of 10.8%, while fuel inflation reached 27.9%. Food and non-alcoholic beverage inflation stood at 1.2% over the same period.
Although fuel increases do not translate directly into equivalent grocery price rises, they add another cost for businesses already managing supplier prices, storage, staffing and distribution.
“Every product on a supermarket shelf has a journey behind it. When fuel costs rise, the impact extends beyond the trucks transporting goods,” says Arno Haigh, national logistics executive at The Spar Group.
Efficiency extends beyond transport
Retailers can manage some of the pressure through distribution planning, vehicle utilisation, route management and order planning. These measures can help reduce unnecessary trips and improve how efficiently goods move through the supply chain.
Energy use at distribution centres is another consideration. Spar has installed solar plants across all six of its South African distribution centres, with the programme beginning at its South Rand facility in 2017. The network’s solar capacity now exceeds 10MW, according to the company.
While solar power does not directly offset diesel costs, reducing reliance on grid electricity can help manage energy expenditure and support continuity of operations.
Reducing waste and protecting availability
Fuel is only one part of the cost equation. Food that spoils, gets damaged or becomes unsaleable before reaching consumers represents a loss of the resources invested in producing, storing and transporting it.
Effective stock management, reliable replenishment and cold-chain control are therefore important to limiting waste, particularly for fresh and perishable products.
These pressures can be more difficult to manage across long distribution routes and in rural or peri-urban areas, where distance and road conditions can add complexity to deliveries. For retailers, maintaining dependable replenishment while controlling transport and handling costs remains a balancing act.
As fuel prices continue to affect transport costs, distribution efficiency will remain an important consideration for grocery retailers. As Haigh notes, the focus is not only on the cost of moving goods, but also on building supply chains that can maintain reliable deliveries under changing operating conditions.
