Cooking oil price skyrockets as petrol decreases
15/09/2022
South Africa has seen possible ‘opportunistic’ increases in the price of sunflower oil, the Competition Commission has found.
“This comes at a time when there is widespread concern over food price inflation faced by struggling consumers,” the body said in its latest monitoring report on essential food pricing.
The report found that sunflower oil processor prices increased by 72% in 2022, which was far more than the price of sunflower seeds, which have remained relatively stable.
Despite this hike, retail prices only increased by 36%, which indicates that retailers absorbed some of the increase.
The commission said there was high and growing concentration along the sunflower oil value chain from sowing seed to the refining level, and this “creates a risk of opportunistic price increases above cost increases during periods of inflation”.
Published – News24
“In the case of processor prices, these increases have not been entirely driven by the price of sunflower seeds. While processors may have seen some cost increases for energy and fuel, the large widening of margins is a cause for concern for the commission as it may indicate opportunistic pricing behaviour unrelated to costs,” the commission said. In July 2022, the cooking oil price rose to R230,44, nearly a R100 more than it cost during the same period last year (July 2021), when it cost R140,52 for 5 litres, according to the July 2022 Household Affordability Index.
The index is released monthly by the Pietermaritzburg Economic Justice & Dignity Group, which was founded in 2018, “in response to the unjust and unequal political economy of South Africa”.
FAST FACTS: HISTORY OF COOKING OIL PRICE
- 5 litres of cooking oil cost R228,94 in South Africa in June 2022
- Certain vegetable cooking oil (except olive oil) is zero-rated, meaning its exempt from value-added tax (VAT)
- Cooking oil price is the lowest in Cape Town at R222,31
- Cooking oil cost R229,41 in Durban in July 2022
- Gauteng had the highest cooking oil price in July 2022 – R239,82
Published – The South African
For more info email: nicole@foodserv.co.za
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