Young emerging farmers in the Limpopo province are raising alarms over the recent increase in fuel prices by Finance Minister Enoch Godongwana in his third budget speech. They are warning that the added costs will severely impact their operations. Many have strongly criticized the government’s decision to raise the fuel levy for diesel and petrol, arguing that it comes at a time when they are already grappling with high input costs, including fertilizers, pesticides, and electricity.
Financial Strain on Farmers
The fuel levy hike—an increase of 16 cents per liter for petrol and 15 cents per liter for diesel—has left many farmers fearing further financial strain. One farmer expressed frustration, stating, “The recent increase in petrol will affect us as farmers very badly because our production inputs are already high. Fertilizer and chemicals are expensive, and we were already affected by the floods from December to January. We didn’t even make money that season—now it will be worse.”
Small-Scale Farmers Hit Hardest
Small-scale farmers, who rely heavily on transportation and diesel-powered equipment, are among the hardest hit. Windshaka, a small-scale farmer who personally delivers her produce to markets, revealed that she has already had to lay off workers due to economic pressures. “I use diesel at my farm because I don’t have electricity,” she said. “Every day, we buy fuel just to keep our crops growing. This increase is very bad for my business.”
Potential Rise in Food Prices
Some producers warn that the fuel price hike could lead to increased food prices, as transportation costs rise. “Looking at our farming process, we move produce from our farms to suppliers,” one farmer explained. “With fuel prices going up, we’ll have to increase our prices. This could make it harder to meet market demand, and ultimately, consumers will suffer the most.”
Government Measures Criticized
While the government has stated that the fuel levy increase is necessary, farmers argue that it will disproportionately hurt low-income consumers. “The government says it’s trying to protect the poor by not increasing VAT, but these fuel hikes will come back to hurt them through higher food prices,” a farmer noted.
Adding to their struggles, many small-scale farmers are still recovering from climate-related disasters, including severe flooding and heatwaves in 2024.
As fuel costs continue to rise, the agricultural sector faces mounting challenges, with young and emerging farmers calling for government intervention to ease the burden on food producers and consumers alike.
