Consumers are being urged to report businesses that unfairly increase prices as fuel costs are due to rise amid supply disruptions due to the war in the Middle East.
The warning comes as sectors heavily dependent on fuel face mounting pressure. These include transport and logistics, diesel and jet fuel markets, as well as industries producing fertilisers, plastics and other oil-based products. Food and delivery services are also likely to be affected.
The Competition Commission said in a statement the price increases must match actual cost changes. Businesses are not allowed to boost their profit margins during this period.
“We are concerned that some companies may use the current uncertainty to charge excessive prices.
“Oil prices have jumped above $100 [a barrel], which is R1,711.87 per barrel, in recent weeks, which is expected to push up fuel costs and, in turn, the price of goods and services across South Africa,” it said.
Despite these pressures, the commission has encouraged businesses to follow strict rules when adjusting prices. “Companies are only allowed to increase prices after they experience real cost increases, not in anticipation of future hikes.
“Failure to comply could lead to investigations and possible prosecution,” the commission said.
To help curb price gouging, the public is encouraged to report any suspected cases.
When reporting, information such as the name and location of the business, details of the product or service, the old and new prices, and why the increase seems unfair must be included.
Complaints can be submitted via email to ccsa@compcom.co.za or by WhatsApp on 084-743-0000.
TimesLIVE
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