Government working on relief measures for food, fuel prices, says Ramaphosa

Government is looking into methods to cushion South Africans against the looming increases in fuel and food prices caused by the ongoing war in Ukraine.

Answering questions in the National Assembly on Thursday, President Cyril Ramaphosa said Cabinet raised concerns about the soaring prices at a meeting on Wednesday.

“Treasury and other departments such as that of minerals and energy are reviewing methodology to identify ways to reduce costs of fuel. This changes will be implemented as soon as possible.

“We are aware that food prices are rising and will continue doing so, we are determined to take steps to cushion South Africans from various price pressures they are facing.”

ALSO READ: Russia-Ukraine: Agri SA sounds warning, says SA’s food prices will soar if govt does not act

Experts fear that the fuel price could rise to up to R40 a litre as a result of Russia’s war in the Ukraine.

Earlier this month, the oil price reached a seven-year-high when Brent crude breached $110 a barrel – an increase of 4.88%, while the WTI (West Texas Intermediate, the benchmark crude for North America) spiked by more than 5%. Fuel hikes have a rippling effect on food prices, leaving some grocery items no longer affordable to many.

The conflict will further affect sectors such as transport and agriculture.

DA leader John Steenhuisen, who brought grocery items to the sitting, suggested the scrapping of VAT on items such as meat, the sugar tax and the fuel levy.

“We are approaching winter, and food and fuel are increasing. Electricity will also go up too… South Africans are paying for your government’s corruption. Billionaires don’t do own shopping…and I can tell you prices of cooking oil, tin fish and meat will soar.”

Reacting to questions on the war, Ramaphosa reiterated that government wanted a diplomatic and mediative resolution to the conflict.

He decried the state of the United Nations’ Security Council, which he said should be transformed to include other country representatives such as those from Africa.

‘The absence of other members in the Security Council weakens the work of the UN. Had it been resolved, we would be in a much better position. Now we have even more evidence to advocate for the transformation of the UN Security Council.

“That a continent of 1.3 billion people doesn’t have a voice in the Security Council is a concern. Excluding some voices, not only African, who can’t put their voice to the table cannot be allowed to continue.”

He added that South Africa will mediate and encourage talks after requests to do so.

ALSO READ: Prepare for more pain: Fuel price predicted to soar even higher in April