Petrol hike unjustified and a blow to the poor

protests about putting food on the tables.

South Africa is fast approaching a tipping point where widespread hunger riots and food protests could emerge. Low-income-earning households are not going to escape the VAT and petrol price increases because the fundamental problem is that food is expensive and South Africans face a “food-affordability crisis”.

Before the VAT and petrol price increases, households were not prioritising buying food in order to make ends meet. They were differentiating between nonnegotiable expenses and those expenses they have some measure of control over.

Households prioritise transport, electricity, water, education, burial insurance and repayment of debts. The food budget arises out of money left over only after other non-negotiable expenses have been paid.

This means that for many households, the food budget is low and they under-spend on this category. Food often runs short before the end of the month and the breadwinner absorbs these shortfalls by taking on more debt.

There is still no light at the end of the tunnel as economists warn that there will be another increase in the price of fuel in May. An already-critical situation is being exacerbated by the government.

The greatest irony is that our petrol price is higher than in our neighbouring countries – which receive supply from South Africa.

JAYRAJ BACHU Clare Estate