Fuel Surcharge Policy

On 1 July 2026, Shesha Fuels — TFC’s contracted bulk diesel supplier — confirmed a wholesale price of R25.47 per litre for 50ppm diesel in Gauteng (excl. VAT). This represents a reduction of R3.59/litre from the previous confirmed wholesale of R29.06/litre.

R25.47/litre falls within the Tier 3 band of this policy (R23.45 – R28.44/l). In accordance with Section 6 (Deactivation), the Fuel Surcharge is being stepped down from Tier 4 (R30/stop) to Tier 3 (R20/stop), effective 8 July 2026 following the standard 7 calendar-day customer notice period.

Current surcharge (to 7 July 2026): Tier 4 — R30 per stop (all regions)
Surcharge from 8 July 2026: Tier 3 — R20 per stop (all regions)

Market context: The 1 July 2026 reinstatement of the full R3.93/litre diesel levy has been absorbed into supplier pricing from July onwards. Wholesale diesel remains R7.02/litre above the policy baseline of R18.45/litre. TFC will continue to monitor supplier notices and the DMPR gazette, and will apply further tier adjustments (up or down) in line with Sections 3 and 6 of this policy.

Invoices from 8 July 2026 will reflect ‘Fuel Surcharge — July 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 a sustained elevated fuel cost environment:

Global crude oil volatility: The US–Iran military tensions and Middle East supply disruptions from Q1 2026 pushed Brent crude above $120/barrel at the peak. Wholesale conditions have partially eased since May 2026, but pricing remains structurally above pre-2026 levels.

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 has fully wound down: The temporary diesel levy relief programme (R3.00/l from 1 April; R3.93/l from 6 May; halved to R1.96/l in June) expired on 30 June 2026. From 1 July 2026, the full R3.93/litre diesel levy is reinstated.

Rand exposure: The rand’s trading range against the US dollar continues to amplify 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 (or Section 6 deactivation condition) 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 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:

(a) the wholesale diesel price returns below the applicable trigger threshold for two consecutive monthly billing cycles; OR

(b) 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 calendar days, with the change effective from the next billing cycle. The 8 July 2026 Tier 4 → Tier 3 step-down was actioned under Section 6(b) following Shesha Fuels’ 1 July 2026 confirmation of R25.47/litre.

7. Current Market Context (July 2026)

This section provides factual context for the current surcharge tier. It is updated as conditions change.

Diesel wholesale price trajectory (Gauteng, 50ppm):

* Confirmed by TFC’s bulk diesel supplier (Shesha Fuels).
** Based on DMPR corrected gazetted wholesale reference for Gauteng (revised from R6.19 to R5.27 following decimal-point error).

Government levy relief timeline:

Wholesale prices peaked in May 2026 and have since eased by approximately R5.91/litre despite the phased reinstatement of the full diesel levy. The underlying softening in imported refined fuel costs has more than offset the levy withdrawal.

The current environment is elevated but stabilising. TFC’s Tier 3 position reflects an approximately R7.02/litre premium over the February 2026 baseline. Further tier adjustments — up or down — will be actioned promptly on receipt of qualifying supplier notices or gazetted BFP movements.

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/