Petrol stations across South Africa are increasingly considering cutting operating hours, reducing staff, or even shutting down overnight as rising fuel costs place severe pressure on the industry.
Retailers say the combination of higher fuel prices, declining sales volumes, and growing security risks is creating an unsustainable environment for many service stations, particularly in smaller towns and rural communities.
The warning comes from Henry van der Merwe, chairperson of the South African Petroleum Retailers Association (SAPRA), who says many filling stations are already struggling to remain profitable.
Although recent international oil movements briefly improved local fuel price recoveries, South African motorists are still expected to face another major petrol price increase next week due to changes in government fuel levy relief measures.
Fuel Levy Changes Set To Push Prices Higher
The National Treasury introduced temporary fuel levy relief earlier this year to soften the impact of rising global oil prices.
However, government has now begun phasing out the relief.
From June, 1.50 rand per litre will be added back onto petrol prices, with the remaining portion expected to return in July. Current projections suggest motorists could still see petrol price hikes of more than 1.40 rand per litre despite recent recovery improvements.
According to the Central Energy Fund (CEF), petrol price recoveries recently shifted into positive territory after starting the month deep in under-recovery.
But the improvement remains too small to offset the return of fuel levies.
Van der Merwe explained that many consumers mistakenly assume petrol stations benefit from higher pump prices.
In reality, retailers operate on regulated margins that remain largely unchanged regardless of the final fuel price.
“If fuel sells for 25 rand per litre or 40 rand per litre, the retailer still earns roughly the same margin,” he said during an interview with CapeTalk.
He warned that higher fuel costs are instead reducing customer demand, with motorists driving less frequently, planning trips more carefully, and turning to alternative forms of transport.
Rural Stations Face Growing Survival Threat
Fuel retailers say changing consumer behaviour is already having a visible impact on forecourt sales volumes nationwide.
Taxi operators and ordinary motorists alike are increasingly choosing to buy smaller amounts of fuel instead of filling their tanks completely.
For rural petrol stations that depend heavily on consistent fuel sales, the situation has become especially concerning.
According to Van der Merwe, some station owners have informed SAPRA that overnight operations are no longer financially viable because of low sales volumes combined with rising security costs.
He said certain stations are now actively discussing shorter operating hours, retrenchments, and in some cases shutting down night trading altogether.
Industry leaders fear this could eventually create fuel supply challenges in smaller communities where residents depend on a limited number of service stations.
Van der Merwe also highlighted growing concerns over fuel theft, saying incidents of motorists driving off without paying tend to increase during periods of high petrol prices.
Despite these pressures, attendants are not personally responsible for covering losses related to theft, with service stations relying on CCTV footage and police investigations instead.
SAPRA has already engaged with the Department of Mineral Resources and Energy regarding the worsening situation.
However, Van der Merwe cautioned that any government review of the fuel retail model is unlikely to deliver immediate relief for struggling stations.
Source: CapeTalk, Central Energy Fund, SAPRA