/ 27 January 2009

Fedusa calls for probe into food, transport costs

The Federation of Unions of South Africa (Fedusa) wants the Competition Commission to probe high food and transport costs, it said on Tuesday.

The Federation of Unions of South Africa (Fedusa) wants the Competition Commission to probe high food and transport costs, it said on Tuesday.

Fedusa requested ”a probe into the ever-increasing prices in spite of the recent fuel price cuts”, it said in a statement.

In the past six months, oil had fallen by more than $100 a barrel, ”which should naturally result in lower food prices”, the union federation’s general secretary, Dennis George, said.

It was expected that if the oil price affected food prices on the way up, it should have an equal but opposite effect on the way down. Commuters had welcomed the considerable decline in the petrol price in January.

”It was expected that this drop in the fuel price would bring about the said decrease in food prices, as well as in taxi and bus fares, which in turn would reduce the rate of inflation.”

This had not happened as the taxi industry had not synchronised its taxi fares with the decrease in fuel prices. As a result commuters were still paying last year’s fuel prices.

”As there is a looming fuel price increase in February, taxi and bus commuters remain doubly burdened and again face another fare increase.

”Fedusa had hoped that 2009 would hold financial relief, specifically for financially distressed workers and for South African consumers in general.

”This has clearly not materialised for the poor and destitute people in our country.”

The union federation called on the Competition Commission to investigate the failure of the food, taxi and bus industries ”to honestly and ethically adjust their prices”. — Sapa