AgriSA joins calls for govt to suspend fuel levies amid spike in prices
Agri SA is the latest organisation to call on government to suspend the fuel levies amid a spike in prices due to Russian’s invasion of Ukraine.
Agri SA says this will greatly assist in relieving pressure on small-scale farmers and South African consumers.
The Ukraine-Russia conflict, has seen the price of Brent crude oil skyrocket in the past few weeks, with it trading at approximately $110 a barrel on Monday.
This has led to motorists paying record prices at the pumps.
Spokesperson Kulani Siweya says the government should act swiftly to mitigate this crisis.
"In addition to consumers, the suspension of the fuel levies will also buttress vulnerable small-scale farmers from the increases in input costs, and from the expected hit to agricultural revenue from Ukraine and Russia.
“This is why Agri SA is calling on the government to suspend fuel levies while the Ukraine-Russia crisis persists in order to contain food prices. Failure to act can only exacerbate the pricing pressure on consumers, compromising food security in South Africa, especially for the most vulnerable in society.”
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Both Russia and Ukraine are both major producers of wheat on the global market, accounting for a quarter of global wheat exports.
Russia is also the leading supplier in fertiliser globally. These factors coupled with the fuel price increase could see South Africa's food prices rise exponentially.
Siweya warns the ongoing Ukraine-Russia crisis could spell doom for South African consumers.
"The Ukraine-Russia conflict will therefore have substantial consequences for South Africa’s agricultural sector performance, and the government must take action to mitigate the devastating impact of this lost revenue on the nation’s farmers by assisting with measures such as opening up market access so that products destined for Ukraine can be redirected.
"Agri SA will make every effort to engage government and industry stakeholders throughout the value chain to ensure that, together, we can keep South Africans adequately supplied with food in these uncertain and difficult economic times."
