One South African company winning big amid petrol and diesel crisis

Agri-lifestyle retailer KAL Group saw a significant increase in revenue, driven in part by higher fuel demand in the wake of rising prices.

The JSE-listed company sells agricultural inputs as well as fuel through its Agrimark and PEG subsidiaries respectively, providing to both commercial farmers and DIY garden enthusiasts.

The company recently released their interim financial results for the six months ending 31 March 2026, indicating strong growth and performance over that period.

Company revenue saw a 5% increase when compared to the first six months of the previous financial year, with a gross profit growth of 8.8%.

The company said this was partially due to an exponential increase in fuel demand during March, as a result of the conflict in the Middle East.

“During March, fuel availability was significantly constrained,” KAL Group said. “Fuel demand increased exponentially.”

“Both agricultural and general consumers increased fuel purchases in anticipation of potential fuel shortages and the large April fuel price increases.”

KAL Group’s fuel volumes over the six month period reportedly saw a 6.7% year-on-year increase, with March showing substantially higher demand and market gains.

While the company said performance was positive even before this, it explained that panic buying of fuel during March before the price increases in April was a significant contributor to the company’s revenue growth.

In an interview with 702, KAL Group CEO Johann le Roux explained how the spike in demand impacted the company’s growth prospects.

“Our fuel was up about 10% or 15% up till the end of February, and then obviously in March we had a massive spike for two reasons,” le Roux said. “One was the crisis in Iran.”

“People were worried about fuel supply so there was massive demand. And obviously with the price going up in April, consumers were just buying to fill up tanks to avoid the increase.”

Le Roux said the company experienced a 30.5% increase in fuel volumes sold during the month of March 2026 alone.

Market remains volatile and uncertain

While KAL Group briefly benefitted from the shock, this is not likely to continue as fuel prices continue to climb over the coming months.

Fuel demand saw a significant drop in April, with Discovery Insure revealing a 35% decrease in overall fuel spending across South Africa.

Since the outbreak of the war at the end of February, the prices of petrol and diesel per-litre have increased by over R6 and R13, respectively.

“Normally if the price goes up, there’s an impact on demand,” le Roux said. “When we look at our April numbers, year-on-year we are still up in volumes by just over 1%.”

“But obviously there was an additional price increase in May, so the fuel demand will definitely go down within the next six months.”

While the company said it is confident that it can continue its strong performance into the second half of the financial year, it said potential inflation and higher interest rates could hinder this.

Increased fuel and fertiliser input costs as a result of the war have also put heightened pressure on South Africa’s agricultural sector, which forms a core part of KAL Group’s customer base.

This pressure on farmers will be compounded by severe weather conditions over the coming months, including the potential for a historically strong El Niño period.

Le Roux explained that heavy flooding caused by storms in the Western Cape, which is KAL Group’s most important market, has already significantly damaged agricultural infrastructure in the province.

With all of these factors in mind, le Roux said the company expects a somewhat more volatile and uncertain market going forward.

However, he expressed confidence that South Africa’s agricultural sector would be able to bounce back from the current crisis, with KAL Group’s help.

“Their business is built around the weather, but farmers are resilient,” le Roux said. “They’ll recover from this. They’ll rebuild communities, and we are willing to hold their hands and help them do that.”