South Africa's most economically viable industries – mining, agriculture and food production – are heavy users of diesel. They are currently dealing with a lot of challenges affecting their fuel budget.
First, fuel price volatility is squeezing profits in these industries, some of which already have very thin margins.
Secondly, the South African Revenue Service (SARS) is changing the diesel rebate process to maximize service delivery and compliance.
The entire system is being transferred to a standalone digital platform, separate from VAT returns.
Future claims, including fuel-levy refunds, will be validated through automated checks, which require clean, consistent operational data.
Companies are struggling to comply with these requirements, which can lead to refunds being delayed or refunds rejected with interest and penalties.
Third, operational transparency is becoming essential.
Increased fuel prices affect how mined ore is transported, what equipment can be transported, and when deliveries can be made to ports.
Add criminal activity to the mix, and Agrisa has warned that diesel theft and unexplained losses threaten food security.
It's a dark road ahead in SA mining as rising fuel prices begin to take their toll
Here are three ways companies can manage these challenges:
1. Digital Tracking and Reporting
Sectors across the economy are modernizing their operational data systems in response to stringent regulatory requirements.
Mining is adopting digital reporting frameworks in line with DMRE transparency requirements, agriculture is digitizing record-keeping to meet DALRRD traceability standards, and transportation and logistics are shifting to telematics-based reporting to strengthen security and compliance.
The movement toward automation is accelerating as it removes human error, provides consistent audit-ready data, links diesel use to specific assets and activities, and reduces administrative burden.
2. Accurate Diesel Rebate Claims
For eligible primary producers working the land (farming, forestry, mining), the refundable portion of diesel was increased to 100% of the fuel levy (previously up from 80%) at the end of April.
Depending on the industry and fuel user activity, this could currently be a discount of up to R3.82 per litre.
Against a primary cost of over Rs 30 per litre, in businesses that purchase thousands of liters of diesel each financial year, this is a huge cash flow problem solved through accurate data.
However, companies need operational data maturity to validate diesel use with confidence.
This means clean, consistent, automated fuel-use data with a clear connection between diesel consumption and qualifying activities.
Companies must also maintain audit-ready digital trails, phase out manual logs and spreadsheets, and use systems that can be adapted to SARS requirements.
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3. Use data
IoT-enabled fuel probes and smart pumps provide real-time visibility into fuel levels and delivery, preventing overfilling, underfilling and unauthorized access.
Instant alerts on abnormal consumption help detect fuel theft or leakage.
The telematics system analyzes driving habits like excessive idling, speeding and harsh braking, which are major causes of fuel wastage.
This data allows managers to implement targeted driver training to encourage fuel-efficient driving practices.
Fuel consumption data collected by IoT devices helps identify underperforming devices.
Abnormal fuel consumption can indicate mechanical problems, such as clogged filters or engine wear, enabling proactive maintenance before they lead to breakdown.
Data on routes, speed and fuel consumption can be used to avoid traffic or difficult terrain, and thus reduce fuel use.
Additionally, by cross-referencing data such as output, run-time and fuel usage against activities, companies can better understand where they can eliminate waste.
In light of the recent issues of diesel shortage, the ability to limit wastage and proactively plan stock ordering is another benefit of using a digital system.
Better data is no longer just a compliance requirement – it's a financial and operational security.