South African small businesses continue to face pressure from persistently high and volatile fuel costs, with fluctuations at the pumps adding ongoing strain to already tight operating margins. Even with the temporary fuel price increase relief measures extended until the end of June 2026, for small and medium enterprises (SMEs), this environment represents sustained financial pressure that extends far beyond fuel itself.

“Small businesses typically feel these shocks first because they have less pricing power and thinner cash buffers.”

 

Small businesses continue to face pressure from persistently high and volatile fuel costs

For SMEs, Friedrich Meisenholl, Regional Investment Manager at Business Partners Limited, says the impact will extend far beyond the forecourt, quickly filtering through to the bottom line of businesses. “Small businesses typically feel these shocks first because they have less pricing power and thinner cash buffers. Ongoing increases and volatility in operating costs can force tough trade-offs between protecting margins and preserving demand, often at the worst possible time.”

“Ongoing increases and volatility in operating costs can force tough trade-offs between protecting margins and preserving demand, often at the worst possible time.”

 

Here’s how SMEs can survive the ongoing fuel price hikes

As higher fuel prices feed through transport, supplier costs, deliveries, on‑site services and, ultimately, shelf prices, Meisenholl says SMEs need to respond proactively to remain resilient in a shifting cost environment.

Meisenholl presents five practical steps SMEs can take now:

Treat fuel as a manageable cost, not a fixed overhead

As a starting point to minimise the direct impact, Meisenholl suggests reviewing routes, consolidating deliveries where possible, reassessing minimum order thresholds and monitoring driver behaviour. “Many businesses treat fuel expenses as unavoidable, but small adjustments – if made consistently – can meaningfully soften the impact of higher prices over time, operationally. Every kilometre saved is a cost avoided!

Incorporate “shock ranges” into cashflow forecasts

For most businesses, cash flow forecasts will shift significantly depending on ongoing fuel price volatility. To avoid being caught off-guard, SMEs should model best-case, base-case, and worst-case scenarios using the latest fuel price trends rather than fixed projections, then stress‑test working capital and supplier terms accordingly.

“Every kilometre saved is a cost avoided!”

 

Audit the cost base before adjusting pricing

Before passing costs on to customers, Meisenholl urges businesses to reassess internal cost drivers such as procurement, packaging, wastage, energy use and staffing patterns to identify efficiencies. “Price increases should be a considered decision, not a reflex response,” he says. “A holistic cost review can often reveal savings that can delay or reduce the need to pass costs on to customers.”

If prices must rise, timing and transparency matter

Customers generally react badly to increases that feel premature or opportunistic. Clear communication is key to avoiding this, says Meisenholl. “Businesses need to be totally transparent with customers around what’s driving the change – whether it be logistics, supplier inputs, or courier costs – and reinforce the value they continue to offer.”

“Price increases should be a considered decision, not a reflex response,” he says.

Protect growth by planning funding proactively

For businesses that had planned expansion or equipment upgrades, higher fuel costs may cause delays. To avoid this, Meisenholl encourages SMEs to engage early on their funding needs, renegotiate terms where possible, and ensure facilities are aligned with cash conversion cycles.

“Cost pressure doesn’t have to mean stalled momentum,” concludes Meisenholl. “Fuel price volatility is an ongoing reality, but with the right financial support and strategic planning, entrepreneurs can adapt and position their businesses for long-term sustainability and growth.”

“Businesses need to be totally transparent with customers around what’s driving the change – whether it be logistics, supplier inputs, or courier costs – and reinforce the value they continue to offer.”

THIS ARTICLE WAS COMPILED BY Business Partners Limited.

The Beach Boulevard Business Precinct along Marine Drive in Blouberg has moved to reassure locals and visitors that the brazen shooting at the News Cafe on Monday afternoon was an isolated incident, and that the area remains safe.

A man in his thirties, who reportedly hailed from Venda, was shot multiple times inside the popular restaurant just after 2 pm. He passed away from his injuries at the scene. The suspects fled the scene and have yet to be arrested.

A video of the incident has been shared widely, but the Table View CPF has called on people not to re-publish it as it may jeopardise investigations. Those sharing the video could also face legal consequences.

After issuing an official statement on the shooting on Monday afternoon, the Beach Boulevard Business Precinct fielded multiple comments on its Facebook page from locals expressing their anger and frustration at the area seemingly undergoing a period of decay, with drug lords allegedly hanging out openly inside and outside venues in the area.

Some residents say the parking lot at the back of the News Cafe is a haven for drug dealers, and that the area is basically a “no-go area” at night.

The Business Precinct says it continues to work with SAPS, Neighbourhood Watch, CPF and private armed security to combat all the issues which prevail.

“We as businesses, just like all other community members, rely on our local and national law enforcement authorities to keep the criminal elements from infiltrating our spaces.”

“We urge all who come down to the Beachfront, just as in any other large active public space, to not lose their common sense and awareness and act responsibly.”

Ward Councillor Jonathan Mills commented that they have been consistently calling for SAPS to resource the area properly.

“We’ve been in the news repeatedly on policing, including raising the problem in Parliament, but there has been no change. Table View SAPS must be resourced for an area which has doubled in size over the last 10 years.”

President Cyril Ramaphosa has launched a legal bid in the Western Cape High Court to have the Section 89 Independent Panel report into the Phala Phala saga reviewed and set aside, arguing that the panel “misconceived its mandate” and relied on speculation rather than evidence.

In court papers filed in Cape Town, Ramaphosa says the panel’s findings and recommendations are “irrational and contrary to the principle of legality”.

“The Panel rendered its report and made its recommendation in the exercise of public power. They are thus reviewable under the constitutional principle of legality,” Ramaphosa states in his affidavit.

He argues that the panel “misconceived its mandate, misjudged the information placed before it and misinterpreted the four charges advanced against me”, adding that it “strayed beyond the four charges and considered matters not properly before it”.

The president says he first approached the Constitutional Court in December 2022 to challenge the report, shortly after it was released. However, he says the matter became moot after the National Assembly voted against proceeding with an impeachment inquiry on 13 December 2022.

Ramaphosa says the matter only became live again after the Constitutional Court ruled earlier this month that the National Assembly rule governing the process was unconstitutional and referred the report back to Parliament’s impeachment committee.

A central plank of Ramaphosa’s argument is that the panel failed to distinguish between “evidence” and “information”.

“The Panel determined that there was no difference between ‘evidence’ and ‘information’,” he states, arguing that the panel then relied on untested allegations and speculative material instead of admissible evidence.

He says the panel “failed to undertake the enquiry to determine whether there was evidence to support the charges and whether such evidence was sufficient”.

The president also takes aim at former State Security Agency director-general Arthur Fraser’s allegations, describing them as “speculation, fiction and conjecture”.

“Mr Fraser’s allegations are just that: allegations, which are based on speculation, fiction and conjecture. They are not evidence,” Ramaphosa argues.

He further claims the panel ignored sworn statements that contradicted Fraser’s version and instead accepted what he describes as improbable allegations involving “a fictitious drug smuggling claim” and clandestine meetings.

Ramaphosa also disputes the panel’s finding that he violated the Constitution by engaging in “other paid work” through his ownership of the Phala Phala game farm.

“The prohibition states that a member of Cabinet may not ‘undertake any other paid work’. Its language is plain. A member of Cabinet may not do other work for which he or she is paid. I did not do any other work and I was certainly not paid for anything of the kind,” he states.

The president further accuses the panel of venturing beyond the charges before it by questioning the conduct of Sudanese businessman Hazim Mustafa and the cash transaction linked to the buffalo sale at Phala Phala.

“Once again, this has nothing to do with any of the charges in the motion,” the affidavit reads.

Ramaphosa says the panel itself acknowledged “a paucity of information” but nonetheless resorted to “suspicion and speculation”.

In his concluding remarks, Ramaphosa warns that it would be “a travesty” for Parliament to proceed with impeachment proceedings while the legality of the panel’s report remains under judicial challenge.

“It would be intolerable and a travesty if the National Assembly were to proceed with an impeachment process triggered by the Panel’s report, at a time when a challenge to the lawfulness and validity of that report is pending,” he states.

He says he will seek an urgent interdict if Parliament continues with the impeachment process before the court challenge is resolved.

“I do not make this application lightly,” Ramaphosa says. “I have carefully considered the report and respectfully submit that the process followed by the Panel and its conclusions are seriously flawed.”