By Rorisang Modiba
- Oos-Vrystaat Kaap (OVK) in the Eastern Cape shut its diesel order book on Monday and will decide on Thursday whether to reopen it.
- NWK in the North West put up its diesel prices this week, with some customers saying they can only buy 80 litres a day.
Some agricultural companies have started limiting how much diesel farmers can buy. Major petrol stations have not yet done the same.
On Monday, OVK in the Eastern Cape closed its diesel order book at its distribution points because suppliers raised their prices. Farmers who want to place an order must call their branch manager for a quote. OVK said the move is temporary while it watches what is happening in the Middle East. A decision on whether to reopen the order book is expected on Thursday.
NWK in the North West also put up its diesel prices this week. Some customers say they can only buy 80 litres a day, but NWK has not confirmed this.
Eighty litres a day is not enough for most farms. A combine harvester burns between 30 and 60 litres every hour, which adds up to 300 to 600 litres in a single day.
This matters because South Africa’s maize harvest starts in April, and many fruit crops are picked between January and May.
Rural agricultural companies often sell diesel cheaper than big petrol stations because they buy in bulk and set their own prices above the wholesale rate.
Trouble in Middle East shipping lanes is also expected to push fertiliser prices up. Saudi Arabia and Qatar, two of South Africa’s main fertiliser suppliers, are among the countries affected.
Data from the Central Energy Fund (CEF) shows the wholesale price of 50ppm diesel could go up by about R6.02 per litre in April. If that happens, the price could get close to its all-time record of R25.75 per litre, last seen in October 2022.
Iran has warned that oil prices could shoot from around $90 per barrel to as much as $200 if the United States does not stop its strikes.
Pictured above: A South African farm.
Image source: Pexels
