Last week’s drop in fuel prices is set to provide relief for South African farmers.
According to Paul Makube, senior agri-economist at FNB Agribusiness, the decrease will help limit the impact of the fuel levy increase of 25c per litre next month.
“The drop comes at a critical time as farmers start stocking up on diesel ahead of the harvesting period. Moreover, farmers are increasingly using petrol and diesel for back-up generators in light of the current power supply challenges.”
Farmers Review Africa has reported that 70% of the country’s food was transported by road and the decrease in the petrol and diesel price was likely to have a positive impact on food inflation, easing pressure on consumers who are already struggling to make ends meet. – Zoë van Rooyen
