Competition Commission Questions High Sunflower Oil Prices, Suspects Price Gouging is At Play

• The Competition Commission is looking into the sharp increase in food prices in South Africa
• The commission released a report which indicated that some industry players may be price gouging
• South Africans are frustrated that it has taken the competition watchdog this long to investigative these prices

JOHANNESBURG - The Competition Commission is perplexed by the prices of sunflower oil and other food products that have gone up this year.

The competition watchdog suspects that some industry players may have been opportunistic and are price gouging. The commission’s latest Essential Food Pricing Monitoring Report found that the price of food staples has gone up but is not coming done as the economic situation changes.

According to the report, sunflower oil processor prices went up by 72% this year, far outpacing the price of sunflower seeds, which has remained relatively stable, reports Fin24.

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The commission also noted that retailers have only increased the price of sunflower oil in stores by 36%. This suggests that retailers might have absorbed some of the increases.

The commission further added that fuel and energy price hikes might have an influence on the sunflower oil processor prices, however, it has allowed some people to unnecessarily hike up prices during periods of inflation.

According to the commission, the increase in sunflower oil and bread prices comes when there is global and domestic concern about food price inflation among struggling consumers, reports BusinessTech.

The commission has also noted that prices have also been quite quick to go up but it takes a long time for the prices to go down when they need to.

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“This is commonly referred to as the ‘rocket and feather effect’ whereby prices are quick to increase and slow to decline where there is cost inflation in the value chain," explained the commission.

South Africans react

South Africans are frustrated that they have been paying exotbent amounts for sunflower oil. Some people want to know how the Competition Commission will handle the price gouging problem.

Here are some comments:

@Shyne_s said:

"But there’s no indication here of the next steps‍♂️, I’m not sure what’s the aim of the article, in fact I’m still trying to figure out what’s next by this commission."

@Questerr_ said:

"Six months into the extortionate cooking oil price the CC yet makes a determination…. Astonishing. It takes investigation to understand price gouging is at work in the supply chain. Thanks to retail which absorbed hikes, and made it possible for consumers to eat.️‍♂️‍♂️‍♂️‍♂️"

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@PlantFather2 said:

"It always amazing how the public will complain in real time, until the rough patch ends then the competent stands up. Only after the fact."

@Tebelloomk said:

"Of course. Made it seem like the Russia and Ukraine war is hampering our production. Sure less sunflowers are planted and exported from there. But we have our own far. That deal in sunflower. Charge them a penalty please."

@Sahil_Lala said:

"Lol, companies and raking in mad profit during a crisis. Name a more iconic duo "

Woman posts cooking oil price of R98 for 2 litre bottle and compares it to old Price, gives Mzansi chest pains

Briefly News previously reported that a woman named Dimakatšo Camilla Supe was taken aback by the new price of cooking oil and simply had to share it with peeps on Twitter.

Dimakatso posted a pic of a 2-litre bottle of oil that was charged at R98 and said:

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"This thing was R23 not long ago."

Twitter peeps had mixed feelings about Dimakatso's findings. Some were convinced that the store may have made a mistake while others felt that the price was correct. People even shared their own experiences with grocery shopping and lamented over how much they had to pay.

Source: Briefly News