Fastway Replaces Variable Surcharges with Fixed 5% Rate

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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Papi Mabele

Papi Mabele has a marketing background, he is a digital marketing expert with extensive experience in launching and building global brands in the emerging markets. Papi is also an avid tech writer, enthusiast and all round tech junkie. As a freelance writer and analyst he has been numerously published in Popular Mechanics (SA), GQ South Africa, Premier Magazine, Driven Magazine, Bloem News, Courant, The Weekly, Enthooze Magazine and PiE magazine amongst others.