Fuel management: a strategic priority for commercial fleets South Africans have felt the impact of fuel price increases once again.While there may be occasional relief in the months ahead, the bigger picture is clear. Fuel price volatility is something businesses will need to manage actively for the foreseeable future.
Andisiwe Nikelo: CEO: WesBank Fleet Management and Leasing
Linda Musonda: FNB Product Head: Sustainable Finance
control the price of fuel, but you can control how efficiently you use it.” Avhapfani Tshifularo: CEO of the Fuels Industry Association of South Africa Why fleet management matters more than ever In a high-cost, high-volatility environment, fleet management is one of the most effec - tive ways to control fuel spend, yet it remains underutilised by many businesses. Fleet Management and Leasing is not just about fi - nancing vehicles. It is about giving businesses the tools, data and insights to run their fleets more efficiently. Key practices that are making a measur- able difference include: • Route optimisation using telematics and data to reduce unnecessary mileage and improve delivery efficiency. • Managing driver behaviour such as speeding, harsh acceleration and idling. • Choosing the right vehicles for the job. • Keeping vehicles well-maintained. • Monitoring fuel usage to identify inef- ficiencies or misuse. For many businesses, these are practical changes that can deliver real savings without major disruption. “Visibility is critical. Once you understand how fuel is being used across your fleet, you can start making smarter decisions that reduce waste and improve ef- ficiency,” Nikelo says. The growing role of electrification Electrification is starting to enter the con - versation for commercial fleets, even though adoption in South Africa remains in its early stages. Electric vehicles reduce reliance on fuel, helping businesses limit their exposure to ongoing price increases. That said, the shift needs to be practical. For example, electric
F or commercial operators, a fuel price increase is not just a cost line item. It is a structural pressure that directly affects margins, operational efficiency and long-term planning. From a fleet management and leasing perspective, the conversation is shifting. Businesses are moving from simply absorbing fuel increases to actively managing them. “Fuel price increases are often seen as a short-term shock, but in reality, they reflect deeper global dynamics that South Africa has very little control over,” says Andisiwe Nikelo, CEO of WesBank Fleet Management and Leasing. “For commercial fleets, that means fuel can no longer be treated as a vari- able cost alone. It needs to be managed as a strategic risk.” What is really driving the fuel price At the core of the fuel price is the Basic Fuel Price, largely determined by international factors such as global oil prices, shipping costs and the rand-dollar exchange rate. Because South Africa imports most of its fuel, it re- mains highly exposed to global disruptions. “Ongoing geopolitical tensions have disrupted global oil supply, and instead of stabilising after the initial shock, prices have remained elevated and unpredictable,” says Avhapfani Tshifularo, CEO of the Fuels Industry Association of South Africa. “For a country like South Africa, which is heavily reliant on fuel imports, this creates ongoing vulnerability to international market shifts.” Currency weakness adds further pres- sure. Even when global oil prices soften, a weaker rand can limit any local relief. “Even in periods where global oil prices decline, a depreciating rand can keep domestic fuel
costs high,” Tshifularo adds. On top of this, regulated costs such as the General Fuel Levy, the Road Accident Fund levy, and the Carbon Tax continue to shape the final price. “People often assume fuel prices are purely about oil,” Nikelo explains. “But for businesses, especially those running fleets, there are multiple layers to the price and very few of them are within their control.” From cost pressure to operational risk For commercial fleets, fuel volatility is no longer just about higher monthly spend. It is becoming an operational risk that affects pricing, delivery timelines and customer commitments. “Fuel price instability is no longer occasional. It has become a continuous, systemic risk that businesses need to manage actively,” says Tshifularo. South Africa’s reliance on imported fuel, combined with limited strategic reserves and ongoing exchange rate pressure, means this volatility is likely to persist. Geopolitical instability continues to compound the issue. “Conflicts such as the Russia-Ukraine war and tensions involving Iran can disrupt global oil supply and drive price volatility,” he says. “At the same time, exchange rate fluctuations and global supply decisions add further un- certainty.” At the same time, inefficiencies in how fuel is distributed locally can create ad- ditional pressure, particularly when demand spikes or supply chains are constrained. “In many cases, shortages are not due to a lack of fuel, but rather constraints in how efficiently it can be distributed when demand increases suddenly,” Tshifularo notes. “This is where businesses need to shift their mindset,” Nikelo continues. “You cannot
6 ¦ MechChem Africa • May-June 2026
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