Petrol price cut unlikely to ease food price pressures

While consumers will be cheering at the reduction in fuel prices for September, experts have warned that it will do little for those battling the cost-of-living crisis in the country. 

The Department of Petroleum and Mineral Resources (DMRE) announced that petrol will decrease by 4 cents per litre for both 93 and 95 Unleaded, the second consecutive drop in as many months.

Diesel with 0.05% sulphur will fall by 56 cents per litre and 0.005% sulphur by 57 cents.

The decreases are largely driven by rising production from OPEC+ and non-OPEC producers, weaker global economic growth, and fluctuating trade tariffs.

While the petrol cut offers limited relief to motorists, it is the diesel decrease that carries the greatest significance for South Africa, a country where nearly all goods, and particularly food, are transported by road.

Recent CPI figures released by Stats SA showed that annual consumer price inflation rose to 3.5% in July 2025, up from 3.0% in June.

The main contributors were food and non-alcoholic beverages (up 5.7%, contributing 1.0 percentage point) and housing and utilities (up 4.3%, contributing 1.0 percentage point).

This confirmed that food remains one of the strongest drivers of inflation, leaving South Africans struggling to keep up with the cost of living.

“Diesel reductions always bring hope that transport costs will filter down to food prices, but sadly history has shown this rarely happens in practice.  Consumers remain trapped by escalating food costs, even when input costs ease,” Neil Roets, CEO of Debt Rescue said.

Child hunger affects millions of children in South Africa, with far-reaching consequences for their health, education, and future prospects.

Chronic hunger can lead to malnutrition, stunted growth, and impaired cognitive development, making it challenging for children to learn and thrive.

Activist Mark Heywood of the Justice and Activism Hub (JAH) puts the figure at 11 000 per annum, a crisis he believes can easily be rectified.

He placed the responsibility squarely at the foot of the country’s decision makers - leaders in government and business, attributing it to their failure to adequately tackle the crisis, with retailers’ raking in massive profits made on food, while millions of children go hungry. 

He emphasised that the systematic monitoring of child health is absolutely essential at this point.

The 2025 edition of The State of Food Security and Nutrition in the World portrays a distressing truth: while the world appears to be making cautious progress in reducing hunger, many countries in Africa, particularly in the Southern African region, are moving in the opposite direction, with hunger continuing to rise in both absolute and proportional terms.

Agriculture plays an important role in the process of economic development and can contribute significantly to household food security. 

South Africa's rich agricultural heritage has long been an integral component of the nation's economy and cultural fabric, and the mandate of the Department of Agriculture, Land Reform and Rural Development (DALRRD) focuses on developing agricultural value chains, providing agricultural inputs, and monitoring production and consumption in the agriculture sector, as well as facilitating comprehensive rural development.

“It is deeply disturbing that a country like ours, with its rich agricultural resources, is entertaining the deepening food crisis, while countries in other parts of the globe are making good progress in turning the situation around and many succeeding in eradicating the scourge of hunger.  There is no question that this needs to be escalated as a matter of national urgency, or we are looking at a humanitarian crisis the likes of which we have never seen before,” Roets said.

For many households, the reality is that wages are simply not enough to cover basic monthly expenses.

Electricity and transport absorb a significant share of income, leaving very little for food.

As a result, families are increasingly forced to swipe credit cards, tap store accounts, or take out personal loans just to put food on the table and fuel in their cars.

“Credit has become a survival tool rather than a means to improve one’s standard of living,” Roets added.

“We are seeing growing numbers of consumers taking payday loans or revolving credit just to buy groceries. This creates a devastating cycle. They repay these debts with interest when their salary comes in, leaving them short again the very next month. It’s a debt trap that keeps tightening and turns into a debt spiral.”

The latest Household Affordability Index from the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) highlights this ongoing pressure.

In August 2025, the average household food basket cost R5 380.62, while the average general worker’s wage was just R4 836.72, already a shortfall, before factoring in rent, transport, and electricity.

“Hope is fading for countless families. Despite temporary cuts in fuel, the broader reality is that household incomes cannot keep up with rising costs. The unavoidable reliance on credit is driving over-indebtedness to record levels,” warns Roets.

“It is deeply concerning that authorities are ignoring the writing on the wall,” Roets added.

“My advice to those who have fallen into a debt trap is to seek help from a registered debt counsellor who can assist them to manage their financial predicament. This has been a very successful solution for thousands of consumers who are plagued by over-indebtedness,” he said.

Meanwhile, Abigail Moyo, spokesperson of the trade union UASA said that UASA strongly urges its members and consumers to adhere to sound financial strategies, even as prices decrease.  

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