Food prices set to increase
South Africans are off to a bad start of their second half of the year, as the price of fuel is set to rise; with the price of 95- Unleaded petrol projected to go up by R2.57, 93-Unleaded will rise by R2.37, 50ppm diesel is set to increase by R2.30 per litre while 500ppm grade will see a R2.31 rise and Illuminated paraffin is set to go up by R1.66.
Fuel price increase will lead to price increase in goods and services, which includes food. The price hike was announced by the Minister of Mineral Resources and Energy, Gwede Mantashe yesterday afternoon in which he stated, that the adjustment of fuel price based on the current local and international factors will effective as 1st of June 2022.
According to Mantashe these increases were largely influenced by the Russia-Ukraine conflict.
“Due to the ongoing Russia-Ukraine conflict, which has affected fuel prices globally, the temporary reduction in the general fuel levy of 75 cents per litre announced by the Minister of Finance in consultation with the Minister of Mineral Resources will be implemented in the price structures of petrol and diesel during this period until the 3rd of August 2022,” Mantashe said in a statement.
Democratic Alliance(DA) Premier, Alan Winde, explained that the high increase of the fuel prices, will force South African’s to face a hike in the cost of food as well.
“A fuel increase will drive food prices up and deal a devastating blow to millions of poor households already struggling to put food on the table,” explained Winde.
Speaking to Iziko, shoppers expressed concern that if fuel prices rise, they will not be able to manage, as they are already struggling to cope with current food prices and are resorting to buying lower-cost products.
A frequent Shoprite customer, Mthokozisi Zwane, said he and his family had resorted to buying food items that are affordable as opposed to focusing on quality, and such they have stopped being fussy about the quality of food they purchase.
“We cannot afford red meat anymore, we need to resort to chicken or to vegetables, what we feel we are able to afford…it is making us to resort to choices we do not want to take,” said Zwane.
Production Manager of a leading SA company, Mnelisi Mkhize explained that if the products are not purchased because they are expensive, companies will be forced to cut jobs.
“Transport costs will automatically go up, the increase in transportation goes up and the final product must go up,” said Mkhize.
Mawande Mzobe & Tsakane Mhlongo
Trolley imaged sourced from: Shopping Venture – Free photo on Pixabay
Groceries image sourced from: Shopping Spending Till Slip – Free photo on Pixabay