South Africans are battling the rising costs of various essentials such as food, electricity and fuel. Photo: niedzialekmadzia, I, DL. and Joshua Tomlinson / Flickr
Food, electricity and fuel: Rising costs hurting South African households
Citizens in South Africa are facing rises in food, electricity and fuel prices but when does the struggle end for locals?
South Africans are battling the rising costs of various essentials such as food, electricity and fuel. Photo: niedzialekmadzia, I, DL. and Joshua Tomlinson / Flickr
South African households are battling to make ends meet. With rising food prices, hikes in electricity tariffs and inflating fuel prices, what has changed in recent times.
Food
Food price inflation in South Africa continues to make locals suffer. Since the last Absa Quarterly Perspectives report, it has worsened. Already high global prices are pushed even higher due to the ongoing Russia-Ukraine conflict.
The Chief Economist for the Agriculture Business Chamber of South Africa Wandile Sihlobo said that the war came at a terrible time. The war follows the recovery of many countries from the COVID-19 pandemic.
Sihlobo explained that South Africans are not alone. Not only has the conflict resulted in rising global grain costs but also decreasing food security. Essential foods have increased yearly above the headline inflation.
The Pietermaritzburg Economic Justice and Dignity Group say that staple foods such as apples, polony, beef and chicken livers have seen an increase of over 20% since April last year.
Cooking oil has had the most significant increase in South Africa as it went up by a massive 42%.
Electricity in South African homes and businesses
Absa says electricity is also a source of upside price pressure. Electricity price tariffs went up by 9.6% for Eskom customers in April this year. A municipal increase of 7.47% is expected to be in effect from July 2022, reports BusinessTech.
On top of these price hikes, South Africans have been subjected to load shedding. Just recently, embattled power utility Eskom announced that Stage 2 load shedding would be in effect from 3 to 9 May.
“After this year’s electricity hike, we have pencilled in an 11.2% hike for 2023. Eskom is likely to apply to claw back higher than initially envisaged coal and diesel primary energy costs,”
said Absa.
Businesses and households in South Africa are using alternative power sources during load shedding. This includes diesel-run generators and illuminating paraffin. These are the fuels that have been subjected to massive price hikes this week.
Fuel
The Automobile Association (AA) said on Tuesday, 3 May, that an increase in diesel and illuminating paraffin this month will tremendously impact the cost of living for South Africans.
From Wednesday, 4 May, both grades of petrol will decrease by 12c a litre while diesel will increase by 92c per litre for 0.05% and 98c per litre for 0.005% sulphur. The price of illuminating paraffin will also increase by as much as 80c per litre in South Africa.
The AA says that the petrol price decreases would only provide short-term relief.
