Fuel Hike Set To Affect Food Prices – Economists

South Africans are facing “the biggest ever” petrol price hikes. PICTURE: ANA

Economists say the latest fuel price increase will have a knock-on effect on the price of food

This comes after the petrol price increased by a hefty 74 cents per litre at midnight. Diesel went up by 93 cents per litre.

Illuminating Paraffin saw a 76 cents increase per litre and the retail price of LP Gas rose by R1.01 per kilogram.

The Energy Department has attributed the significant increase to the high price of Brent crude oil.

“The food prices in South Africa are influenced a lot by diesel prices and the reason is that SA does not have waterways and we rely a lot on land transport by road. And something like the price of bread will have a bigger influence around 10 or 11%,” Economist Mike Schussler said. 

“The diesel price will have an influence on the price of bread. Meat less so; but food process in general have a large transport component to them and of that diesel makes up quite a big percentage.”