Possible fuel surcharge on hold for now

OPLASA responds to market conditions

SOUTH AFRICA: The Off Port Limits Association South Africa (OPLASA) has confirmed that they are monitoring the current market conditions through April before making a final determination on whether their members will impose a fuel surcharge on OPL operations.

The fuel price increases announced yesterday represent a significant blow to an industry that already operates on tight margins,” said Andrew Hendrikse, Chair of OPLASA after a special members meeting today.

“We have run the numbers and the impact of this increase sits at around 4.5 to 5% on our costs and revenue. That is not something the industry can absorb indefinitely, but will not rush into a decision that affects our members and their clients without first watching how the market behaves over the coming month.”

OPLASA convened a special members’ meeting this morning to assess the impact on the OPL sector following yesterday’s announcement by the Minister of Mineral and Petroleum Resources of significant fuel price increases effective from 1 April 2026. Diesel prices have surged by more than R7 a litre, with 500ppm diesel rising by R7.37 and 50ppm diesel by R7.51 per litre, against a backdrop of Brent Crude oil prices that have climbed approximately 38% over the preceding review period in the wake of global geopolitical tensions.

Members met to discuss how the association should respond to what the chair described as an extraordinary set of cost pressures for an industry already operating on tight margins. The primary question before the meeting was whether OPLASA should move to institute a temporary fuel surcharge, and if so, when and on what terms.

Members have resolved to take a measured stance that monitors market conditions through April before making a final determination on a surcharge. The association acknowledged that while the cost impact is material, moving prematurely could create uncertainty for clients and potentially undermine the coordinated industry response that such a mechanism requires to be effective.

Hendrikse noted that the approach was consistent with what is emerging across related sectors, where service providers are absorbing the cost increase for the short term while placing the industry on notice that a surcharge may follow should fuel prices remain at elevated levels.

“We are aware that some suppliers and market participants are suggesting that prices may ease during April,” he said. “We want to give the market time to settle. We are prepared to take the knock for this month, and we will reassess at the end of April. If prices remain where they are, we may not have a choice.”

Transparent temporary surcharge mechanism

Discussing the structure of a potential surcharge, OPLASA members agree that the mechanism needs to be clear, transparent and directly linked to an objective benchmark. Under this approach, the surcharge would activated above a defined threshold and automatically fall away once prices drop below it.

“If we do introduce a surcharge, it will be temporary, transparent and tied directly to the fuel price,” Hendrikse said. “There will be clear parameters so that both our members and their customers know exactly when it applies and when it goes away. There will be no ambiguity.”

“Members remain entirely free to set their own rates and compete as they always have. What we are looking at is a coordinated industry response to an extraordinary set of circumstances,” said Hendrikse.

OPLASA will issue a further communication to the industry once it has had the opportunity to assess market conditions at the close of April.

PHOTO: © Maritime Review Africa

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