The Fuels Industry Association of South Africa has welcomed the judgment handed down by the Supreme Court of Appeal (SCA) on 12 January 2026 in Kasselman N.O. and Others v South African National Roads Agency Limited and Others.

It has described the ruling as a significant affirmation of lawful, transparent, fair and accountable decision-making with far-reaching implications for fuel retailers, employment and consumer welfare.

The SCA set aside SANRAL’s decision to adopt its 2021 policy and to impose increased access levies in its entirety, confirming that the policy was unlawful and of no force and effect. In doing so, the Court affirmed that SANRAL’s decision on access levies constitutes administrative action and must comply with the Constitution, the SANRAL Act and the Promotion of Administrative Justice Act (PAJA). For the petroleum retail sector, the ruling provides long-awaited clarity and legal certainty.

From the Association’s perspective, the judgment goes beyond a narrow legal finding and speaks directly to the operational and economic realities facing fuel retailers within a highly regulated and tightly margined pricing environment. The 2021 revision of the 2016 access levy policy, which substantially increased the levy on fuel and ancillary sales, was introduced without the requisite consultation with affected stakeholders and without the required Ministerial oversight. Retailers were threatened with unsustainable costs that would not be recoverable under the current regulated fuel pricing framework.

In practical terms, the revised levy threatened the commercial viability of several sites. For some retailers, the levy would have translated into unrecoverable severe additional costs. These pressures posed real risks to employment, business sustainability and the continued availability of fuel station services and products in many locations.

The Fuels Industry Association of South Africa, working alongside the Fuel Retailers Association, the Liquid Fuels Wholesalers Association, and the South African Petroleum Retailers Association, has consistently raised concerns about the absence of consultation, the lack of an approved cost-recovery mechanism and the broader economic consequences for the sector and consumers in relation to the increased access levies. It had additional concerns about the constitutionality and legality of the increased levies.

 The SCA’s ruling now restores regulatory certainty and economic stability by implying that the 2016 access levy framework remains the only lawful policy currently in place. Crucially, it also sends a clear message that any future attempt to revise access levies must follow a constitutional, lawful, transparent and consultative process that rationally and fairly affords affected parties a meaningful opportunity to participate, and results in an outcome that is compatible with the legal principles that govern SANRAL. The Fuels Industry Association of South Africa views this judgment as an important safeguard for regulatory fairness and a critical precedent for how public entities engage with regulated sectors. The Association remains committed to constructive and good-faith engagement with SANRAL should a new consultation process be initiated. It will continue to play a leadership role in advocating for a regulatory environment that complies with constitutional imperatives and supports infrastructure development whilst remaining economically sustainable for fuel retailers and fair to consumers.

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