South Africans can expect a sharp rise in 2-liter oil prices
South Africans are likely to experience even more pain when they go grocery shopping in the near future.
Edible oil prices continue to rise, with sunflower oil rising 55% and canola oil 40%, said Morne Botes, commercial director of Southern Oil (SOILL).
Botes said consumers can expect to pay R119.99 for a 2-liter bottle of oil within a month. It currently costs between R80 and R90 on average for a 2-liter bottle of oil in South Africa.
In an interview with 702 On Thursday, Botes explained that Russia’s war in Ukraine affected the supply of sunflowers. Russia and Ukraine are the main suppliers of sunflower oil in the world.
According to Botes, the supply was already scarce before the outbreak of the war.
“Before the outbreak of the war there was already a poor supply of vegetable oil, soybean, sunflower and canola,” said Botes.
Supply of sunflower oil
He said South Africa does not produce enough sunflowers to meet local demand.
talking with Business InsiderBotes said the rise in edible oil prices would likely remain for the next six months, depending on the European rapeseed and sunflower supply in September and October 2022.
“Whether it’s a ‘good or bad’ crop will show if it stays longer or if we could see some price relief,” said Botes.
Botes added that it will not only be edible oils that will increase in price, but also products such as margarine, sauces, crumbled products and oil-infused products.
He also said the full increase has yet to hit consumers.
“The full impact is yet to come, prices have gone up for retailers to trade, not hitting the shelves yet but expect soon,” Botes explained.