Fastway Couriers has introduced a permanent shift in its pricing structure, moving away from the industry-standard dynamic fuel surcharge in favour of a fixed 5% fuel-related rate adjustment.
This move comes at a critical time for the South African logistics sector, where fuel prices have seen extreme surges – increasing by approximately 68% in just over a month following the record hikes in April and May 2026. By fixing the rate, Fastway aims to eliminate the “monthly surprise” on invoices, allowing small and medium-sized enterprises (SMEs) to forecast their delivery costs with total certainty.
Usually, in the South African courier market, it is standard practice to apply a variable fuel surcharge that fluctuates based on the monthly petrol price. These surcharges currently range from roughly 18% to as high as 52.68% at some major providers.
The logistics provider’s strategy is specifically tailored to home-based businesses and e-commerce retailers who may not have the financial infrastructure to manage complex, shifting surcharge tables.
According to Fastway’s Financial Director, Damian Velayadum, fuel accounts for between 20% and 40% of total operating costs. He notes that for a small business, the unpredictability of a fluctuating surcharge is often more damaging than the increase itself. The fixed 5% rate allows these businesses to set their own product pricing and shipping fees with the confidence that their margins won’t be eroded by a sudden mid-month fuel price spike.
To ensure the model remains transparent, the company has confirmed that if fuel prices return to pre-April levels, the rates will be adjusted downwards accordingly.
This pricing strategy is now active across Fastway’s national network.
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