Some communities in Gauteng are now paying up to R28 for a litre of paraffin after its price went up by R11,67 per litre on Wednesday.
People like those who live in informal settlements in Diepsloot and Kliptown are having to dig deep into their pockets to light up their houses, cook and keep warm. In Zandspruit, the prices still range between R17 and R20.
On April 1, the department of minerals and petroleum resources increased the price of paraffin by R11,67 to R23,19.
The local supply chains can include middlemen who sell the paraffin to spaza shops at between R25 and R26, which then gets sold to consumers at up to R28.
Zine Bango, a resident of Kliptown in Soweto, said she was able to buy 25 litres of paraffin at R380 (R15.20/l) and resell it for R22/l before the increase this week.
“Since the price increase on Wednesday, I bought the same 25 litres for R650. This meant I had to also increase my selling price to R28 to make a profit of R2/l. The same profit I use for my consumption, because I also need it, as we don’t have electricity.”
Part of Kliptown has electricity while some parts don’t. The area is also prone to illegal connections.
Bango said her customers were already complaining about the new prices. “There is nothing I can do. As a result, I have only had two customers come to buy since the increase. It’s not easy for me because this is my source of income.”
Her neighbour, Cynthia Vermeulen, 72, said she was aware of the price increase but did not have issues with it as paraffin for her was more reliable than electricity.
“I have been using paraffin for over 30 years. I am comfortable with it because it’s more reliable than our electricity. Sometimes we have it, sometimes we don’t. I still use the paraffin every month and I buy it with my social grant money. Before the increase, I was buying five litres for R32, and at R100, I would have enough paraffin to last me more than a month. I don’t know how much it will cost me now, but I don’t mind.”
In Diepsloot, paraffin-users said the increase would hit them hard. “This increase has put me off my budget, meaning we won’t be able to afford other necessities like relish. We would buy a litre at R18, now it’s R28, we can’t buy the 20-litre containers any more. We will have to reduce it to five litres. We use the paraffin for cooking, ironing, and lighting. Gas has also gone up as well,” said a resident who did not want to be named.
A retailer who only wanted to be identified as Mike said he is currently purchasing stock at R 25.70 per litre and reselling it for R27.50.
He said he bought locally to avoid additional costs like travelling and the limitations of only being allowed to buy 100 litres.
“I usually need 1,000 litres for my business because I supply different areas.”
In Zandspruit, the price ranged between R17 and R20 per litre. According to residents, this was because the need was not as great, as residents rely more on illegal connections.
Sowetan
Michelle Banda,Thulani Mbele
www.sowetan.co.za
