Cooking and cleaning are to become more expensive, the South African Oil Processors’ Association said on Monday.
It said this was because of global shortages of raw materials for cooking oil, margarine and soap.
”Consumers are already burdened with escalating grocery bills, and might have to face another hurdle,” the chairperson of the association, Razak Moosa, said in a statement.
The world palm-oil price had risen by 50% and that of Soya-bean and sunflower oil prices by 35% in the past four months.
Moosa said poor weather conditions had affected the Malaysian supply of palm raw materials, thus pushing up import prices to South Africa.
”The by-product of palm oil is used in toilet and laundry soap, while baking fats and confectionery fats are used in breads.”
He said that internationally, cooking oils were under threat from the increasing demand for biofuels manufactured from the same raw materials.
Moosa said local consumers could expect the higher prices for cooking oils, margarine and soap from July.
The latest anticipated 15% to 20% hike was in addition to the substantial price hikes experienced in the past six months.
He said he believed speculators were pushing the sunflower seed price higher, the long-term effect of which would severely hamper the viability of the South African oil-manufacturing market.
”The oil industry will do its best to hold our prices, despite the problems faced,” Moosa said. — Sapa