The impact of fuel price on supply chain costs in South Africa
| dc.contributor.advisor | Hompashe, D | |
| dc.contributor.advisor | Fobosi, SC | |
| dc.contributor.author | Zanekile, Masonwabe Victor | |
| dc.date.accessioned | 2026-06-25T14:04:11Z | |
| dc.date.available | 2026-06-25T14:04:11Z | |
| dc.date.issued | 2024 | |
| dc.description.abstract | Fuel price volatility significantly affects supply chain costs, impacting the competitiveness and sustainability of business in South Africa. This study examined the impact of fuel prices on supply chain costs in South Africa, exploring the effects on transportation, inventory and logistics management. The study used a time series data from 1990 to 2022 and considered a direct correlation between fuel price fluctuations and their subsequent impact on supply chain costs. The Autoregressive Distributed Lag Model (ARDL) was used to determine long term relationship between the variables. The Error Correlation Model (ECM) was also used in the study to determine the short-term relationship between the variables. The findings revealed that there is a strong positive long run correlation between fuel price and supply chain costs in South Africa by 0.462, and it is statistically significant at 1% level by observing the probability (P<0.0007) in the ARDL Long Run Table. This implies that for every 1% increase in fuel price will result in an increment of 0.462 in the total cost of supply chain. The findings indicate that fuel price increases significantly and contribute to rising supply chain costs, with disproportionate effects on companies and consumers. The study suggested based on the findings that companies in South Africa should familiarise themselves with route optimisation. Rising fuel costs can incentivise logistics companies to optimise their delivery routes to minimise fuel consumption. This could entail utilising sophisticated routing software to discover the most fuel-efficient routes or consolidating shipments to reduce the number of trips. In addition, companies have to investment in fuel-efficient vehicles: High and volatile gas prices can motivate logistics companies to invest in more fuel-efficient vehicles or technologies, such as hybrid or electric trucks, to reduce their dependence on traditional gasoline or diesel fuel. The study is limited to specific variables affecting the relationship between fuel price and supply chain costs in South Africa but acknowledges that other factors may also play a role. Additionally, events outside the research period may not be considered. This research contributes to understanding the implications of fuel price fluctuations on supply chain costs in South Africa, informing policymakers and industry stakeholders. | |
| dc.identifier.uri | http://hdl.handle.net/20.500.11837/4064 | |
| dc.language.iso | en | |
| dc.publisher | University of Fort Hare | |
| dc.subject | Fuel -- Prices -- South Africa | |
| dc.title | The impact of fuel price on supply chain costs in South Africa | |
| person.identifier.orcid | 0000-0001-8730-0986 |