JOHANNESBURG, March 31 (Xinhua) -- South African agricultural organizations AgriSA and Agbiz on Tuesday welcomed the government's temporary reduction of the general fuel levy, calling it "timely relief" for both producers and consumers, while urging additional measures to protect the country's food system.
The announcement came as South Africa prepares for further fuel price increases in April, with petrol prices expected to rise by around five rand (0.29 U.S. dollars) per litre and diesel by as much as 10 rand per litre, intensifying cost pressures across the economy.
While the government has assured that fuel supply will remain stable in April, AgriSA and Agbiz said a recent survey of farmers and fuel retailers points to a "more nuanced reality," with signs of supply constraints and operational uncertainty emerging at the farm level.
In a joint statement, the agricultural bodies said that the three rand (about 0.16 U.S. dollars) per litre fuel levy cut would provide critical short-term relief, particularly amid heightened volatility in global energy markets.
The measure, which is expected to provide roughly six billion rand in relief, would help ease financial pressure across the agricultural value chain, as fuel accounts for between 12 percent and 18 percent of production costs in most farming systems, according to the statement.
The groups also warned that challenges extend beyond fuel prices, citing supply constraints, operational uncertainty and rising input costs, particularly ahead of the winter and summer grain production seasons.
Against this backdrop, AgriSA and Agbiz said the fuel levy cut should form part of a broader package of interventions aimed at stabilizing the sector.
They called for measures to improve market responsiveness and ensure a steady fuel supply, including more frequent price adjustments during periods of volatility, greater transparency on national fuel stock levels, and extending the diesel rebate for primary users to 100 percent.
The groups also welcomed the government's plan to review the fuel pricing framework and introduce broader support measures over the medium term, saying this would be important for addressing structural inefficiencies and supporting key sectors such as agriculture.
