JOHANNESBURG, April 30 (Xinhua) -- South African agricultural groups on Thursday welcomed the government's decision to extend temporary fuel levy relief measures, while warning that deeper structural challenges continue to threaten the sector's stability and future production.
Earlier this week, the National Treasury and the Department of Mineral and Petroleum Resources confirmed that the temporary three rand (about 0.18 U.S. dollars) per litre reduction in the general fuel levy for petrol will remain in place through June.
In a joint statement, AgriSA and Agbiz, two influential industry bodies in South Africa's agricultural sector, said the extension and phased implementation of the relief through May and June would provide short-term cost support to farmers and consumers amid ongoing global oil price volatility.
"The intervention provides important short-term cost relief to farmers and consumers," the organizations said, noting that high fuel costs remain a critical concern across the agricultural value chain.
The agricultural advocacy organizations cautioned that the measure does not fully address mounting pressures facing the sector.
"The relief, while necessary, does not fully offset the deeper structural pressures facing the agricultural sector, particularly fuel availability constraints, rising input costs, and the renewed spike in global oil prices linked to the ongoing Middle East conflict," the statement said.
According to the statement, recent joint surveys of farmers and fuel distributors show that beyond price, the reliability of fuel supply has emerged as a primary concern. In some cases, farmers receive only a fraction of their usual fuel supplies or face delays during key operational periods, it said.
"These disruptions are occurring at a critical time," the groups said, highlighting that the winter crop planting season is already underway across major production regions in South Africa.
Looking ahead, AgriSA and Agbiz warned that continued fuel supply disruptions and cost volatility pose a significant risk to the upcoming 2026/27 summer crop season.
"While the current harvest supports near-term food supply stability, it should not obscure the growing risks to future production cycles," the statement said.
The groups said that diesel remains a non-discretionary input in agriculture, essential for planting, irrigation, harvesting, and transport. As such, both supply disruptions and price increases have immediate and cumulative impacts on output.
To stabilize the sector, AgriSA and Agbiz called for a coordinated response addressing both fuel pricing and supply reliability. Key measures include ensuring consistent fuel availability in agricultural regions. ■