Rising food and fuel prices caused by war are concerning, says Ramaphosa

A committee comprising cabinet ministers has been set up to look at the impact the raging war between Ukraine and Russia will have on ordinary South Africans, MPs were told on Thursday.

“We are determined to take steps to cushion South Africans to the price pressures our people are facing. The government is not sitting on its laurels. We are doing everything we can to try to address the situation,” said President Cyril Ramaphosa. 

The president was responding to a question from DA leader John Steenhuisen,  who wanted to know what government was doing to relieve citizens from the rising cost of living as a result of Covid-19and the ongoing war in Ukraine.

Ramaphosa said: “We discussed it in one of our cabinet committees, and as government we are deeply concerned about the continuous rise in food prices particularly arising from the conflict between Russia and Ukraine.”

He said consultations were taking place between government, business, labour, communities and traditional leaders about the issue.

“We have set up a committee of ministers to look at the impact the conflict is going to have on South Africans when it comes to fuel and food prices . All this is being given consideration," he said. 

Ramaphosa acknowledged the sharp increase in the international oil price has had a ripple effect on food prices.

He assured MPs that “we are using all the levers at our disposal as government to cushion South Africans from the effects of the rising cost of living”.

Extending the Covid-19 social relief of distress grant by another year is one way government has showed its support to the poor, he said, adding that “given the improvement in revenue collection, government has proposed R5.bn in tax relief to help support economic recovery”.

To address the rising cost of petrol, Ramaphosa said finance minister Enoch Godongwana announced no increases will be made to the general fuel levy on petrol and diesel for the 2022/23 financial year. 

“Our fiscal stance will insulate public finances against the possibility of domestic and international monetary tightening while simultaneously supporting households and ordinary taxpayers through higher allocations to pro-poor spending.”

Despite the external shocks the economy has experienced, Ramphosa said it had shown great resilience. 

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