An explainer: What drives the cost of cooking oil in South Africa

Have you ever wondered what’s driving the cooking oil prices in South Africa? Understanding these dynamics can provide valuable insights into not only the global economy, but also the cost of a pantry staple we can’t do without! Let’s take a closer look at some of the factors that affect cooking oil prices, with Morne Botes, the Commercial Director of Southern Oil, as our guide. Global Exporters and Market Dynamics Cooking oils come from various corners of the globe, with the main exporters being: These oils form a complex network of supply and demand, where any shift in one component can affect others. For instance, changes in the supply of palm oil can impact the prices of soya, sunflower, and canola oils, as they are often used interchangeably. Key Market Drivers Several factors influence cooking oil prices on the global stage: Why does one oil’s price affect another? One might wonder why a price increase in one type of oil affects others, but the market for all four variants ...