South Africans may soon notice the impact of global uncertainty at the most important places when they pay for groceries, as increasing oil prices, connected to conflicts in the Middle East, are starting to affect supply chains, leading to worries that food prices could go up in the next few months.
Insights highlighted by BusinessTech show that consumer groups are already preparing for knock-on effects as fuel prices surge past key thresholds globally, pushing up logistics expenses that ultimately filter down to supermarket shelves.
The Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) has cautioned that transparency from retailers will be essential as prices begin shifting.
Programme coordinator Mervyn Abrahams stressed the importance of clarity between businesses and shoppers.
‘It is important that consumers monitor these price increases, and it’s important for the business sector that will carry the cost of increased supply chains and increased petrol costs to explain to the consumers when these stocks were bought and that they were bought at a higher price,’ Abrahams stated.
Not all foods will rise in price at the same time, as imported staples, especially rice, may experience higher prices sooner, depending on how much of these items are still currently available in South Africa.
Locally produced foods may experience a delayed impact, although they are not immune. Even domestic agriculture relies heavily on fuel-driven inputs, from fertilisers to transport.
Abrahams noted that South Africa’s recent maize harvest offers temporary relief, explaining: ‘We had a bumper crop of maize in the last season of growth, and we expect that we will probably survive on that for the next couple of months before we go back into the winter season.’
However, once new planting cycles begin, higher fertiliser and fuel costs could begin influencing prices more sharply.
Fuel remains the central pressure point. When petrol prices rise, costs increase for farmers, manufacturers, distributors and retailers simultaneously.
‘It is very difficult for us to anticipate what level of increases we can expect,’ Abrahams said, adding: ‘Petrol, which has spiked above USD 100, is an input cost right through the value chain… so we do expect increases.’
Products already produced or currently on store shelves may see slower adjustments, while newly imported goods or freshly manufactured items could reflect higher costs sooner.
Beyond rising prices themselves, consumer advocates say poor communication often deepens public distrust.
Abrahams pointed out that shoppers frequently assume increases are unjustified because retailers do not always explain cost pressures clearly.
‘The communication channel between the retail sector and their consumers is not always as good as it should be… consumers often have a perception that price increases are unjustified, and that’s not always the case.’
Meanwhile, food inflation concerns arrive alongside other financial strains, as electricity tariffs are set to rise after Eskom’s approved increase of 8.7%, further tightening household budgets
Abrahams warned that the tariff adjustment alone could significantly erode wage gains, stating: ‘That increase from Eskom will strip something like R103.50 off the increase on the national minimum wage.’
With uncertainty lingering, the PMBEJD is urging government to strengthen economic buffers against global shocks.
Suggested measures include expanding strategic fuel reserves and maintaining stockpiles of staple foods such as maize and wheat to stabilise prices during periods of volatility.
The group believes proactive planning could soften future price spikes and protect vulnerable households already facing financial pressure.
Be the first to know – Join our WhatsApp Channel for content worth tapping into! Click here to join!
Also read:
Picture: Getty Images
