Fuel Surcharge Policy

On 4 May 2026, the Department of Mineral and Petroleum Resources confirmed a diesel price increase effective midnight Tuesday 5 May 2026. The initially gazetted increase of R6.19/litre was subsequently corrected by the DMPR to R5.27 per litre following a decimal-point error in which the additional 93c/litre diesel levy relief was not properly applied. This follows the R7.51/litre increase implemented on 1 April 2026. The wholesale price of 50ppm diesel in Gauteng will rise to approximately R31.38 per litre — a new all-time record.

This places TFC’s diesel cost at more than R10.00/litre above the policy baseline of R18.45/litre, triggering Tier 4 of this policy. In accordance with Section 5, TFC is providing 7 calendar days’ notice. Tier 3 (R20/stop) remains in effect until 14 May 2026. We have not yet received updated pricing from our bulk diesel supplier; the confirmed wholesale price will be communicated once received.

Current surcharge (to 10 May 2026): Tier 3 — R20 per stop (all regions)
Surcharge from 15 May 2026: Tier 4 — R30 per stop (all regions)

TFC has elected not to reprice at this time. The Tier 4 surcharge of R30 per stop reflects the current approved band. Should the geopolitical situation resolve within the next 60 days, TFC will review the surcharge downward in line with Section 6 of this policy. Should conditions deteriorate further, TFC reserves the right to initiate a full pricing review as provided for under Tier 4.

Invoices will reflect ‘Fuel Surcharge — May 2026’.

1. Purpose and Scope

This policy establishes the framework by which The Frozen Food Courier (TFC) applies a Fuel Surcharge to customer invoices in response to increases in the wholesale diesel price as confirmed by TFC’s contracted bulk fuel supplier(s) or as gazetted by the South African Department of Mineral and Petroleum Resources (DMPR).

This policy applies to all TFC service regions, including Gauteng and the Western Cape. Retail diesel prices in the Western Cape are typically higher than in Gauteng due to transport, logistics, and refinery differentials; the surcharge framework accounts for this regional variation.

2. Policy Rationale

TFC operates a temperature-controlled fleet of diesel-powered refrigerated vehicles. Fuel represents a significant and variable component of TFC’s operating costs. Since February 2026, the following structural factors have combined to create an unprecedented fuel cost environment:

Global crude oil surge: The US–Iran military conflict, including the closure of the Strait of Hormuz, has removed approximately 20% of global oil and gas supply from the market. Brent crude has surged above $120/barrel — a level not sustained since the 2022 Russia–Ukraine crisis. US military readiness exercises in the region continue, offering no immediate indication of de-escalation.

Domestic fuel infrastructure: South Africa now refines less than 35% of its fuel domestically following the 2022 closure of the Sapref refinery in Durban. The Transnet New Multi-Product Pipeline (NMPP), which is the primary supply route from Durban to Gauteng, has experienced injection constraints. Road tanker capacity remains stretched.

Government levy relief is temporary and winding down: The R3/litre general fuel levy reduction introduced on 1 April 2026 has been extended, with diesel relief increased to R3.93/litre (effectively zeroing the levy) until 2 June 2026. In June, relief halves to R1.96/litre. From 1 July 2026, the full diesel levy of R3.93/litre is reinstated. The total fiscal cost of the relief programme is estimated at R17.2 billion. Even with full levy relief applied, diesel has increased by R12.93/litre since February 2026.

Rand exposure: The rand has weakened to approximately R16.65/USD, amplifying the cost of imported refined fuel products.

3. Trigger Conditions

3.1 Primary Trigger

The Fuel Surcharge becomes eligible for activation when the wholesale diesel price, as invoiced by TFC’s contracted bulk fuel supplier(s), increases by R2.00 per litre or more above the baseline price established at the most recent annual rate review.

3.2 Secondary Trigger

In the event that the Basic Fuel Price (BFP) as gazetted by DMPR increases by R2.00 per litre or more in a single monthly adjustment, TFC may activate the surcharge regardless of whether a formal supplier notification has been received.

3.3 Activation Requirement

No surcharge will be applied until:

(a) TFC has received written notification from its bulk fuel supplier(s) confirming a price increase meeting the trigger threshold; OR

(b) The BFP gazette confirms a qualifying adjustment; AND

(c) TFC has provided customers with a minimum of 7 (seven) calendar days’ written notice of the surcharge amount and effective date.

Exception: Where a gazetted BFP adjustment provides less than 7 days’ notice (as has occurred in March, April, and May 2026), TFC will activate the surcharge on the gazette effective date and absorb the cost differential for any period where customer notice falls short of 7 days.

4. Surcharge Calculation

4.1 Calculation Basis

The surcharge is calculated on a per-delivery-stop basis to ensure transparency and proportionality.

4.2 Approved Surcharge Bands

5. Activation and Notification Procedure

TFC management reviews bulk fuel supplier communications and the DMPR BFP gazette upon receipt. If a trigger threshold is met, TFC issues a Fuel Surcharge Notice to all active customers via WhatsApp (primary) and email (follow-up), minimum 7 calendar days before the surcharge effective date where operationally possible.

The notice specifies: the trigger event, the applicable surcharge band, the per-stop amount by region, and the effective date. The surcharge is applied as a separate line item on customer invoices, clearly labelled ‘Fuel Surcharge — [Month/Year]’. The TFC website rates page and published rate cards are updated to reflect the active surcharge.

6. Deactivation

The Fuel Surcharge will be reduced or removed when the wholesale diesel price returns below the applicable trigger threshold for two consecutive monthly billing cycles, or when TFC’s bulk fuel supplier confirms a reduction bringing the price below the threshold. Deactivation or tier reduction notice will be provided to customers within 7 days, with the change effective from the next billing cycle.

7. Current Market Context (May 2026)

This section provides factual context for the current surcharge activation. It will be updated as conditions change.

Diesel price trajectory:

* Confirmed by TFC’s bulk diesel supplier (indicated, subject to further adjustment).
** Based on DMPR corrected gazetted wholesale reference for Gauteng (revised from R6.19 to R5.27 following decimal-point error). Bulk supplier confirmation pending.

Government levy relief timeline:

The implication is clear: even if crude oil prices stabilise at current levels, South African diesel prices face a further structural increase of approximately R1.96/litre in June and R3.93/litre in July as levy relief is phased out. The current price environment is not the peak — it is a cushioned version of it.

8. Contractual Basis

This policy operates under Sections 7.2 and 7A of TFC’s standard Terms and Conditions. The Fuel Surcharge is not a permanent rate increase and does not alter contracted base rates.

This policy should be read in conjunction with TFC’s standard Terms and Conditions available at thefrozenfoodcourier.co.za/our-terms-and-conditions/