Grocery CEOs urge government to rethink diesel rebates

“We are doing our best to absorb as much as possible of this cost rather than pass it on to the public at this most difficult time, but we cannot do so indefinitely.”

State-owned electricity utility Eskom, which has struggled for years to meet power demand, is implementing the worst rolling blackouts on record, leaving households in the dark for up to 10 hours a day and disrupting businesses.

Retailers are having to crank up diesel generators for hours to power their vast stores, additional costs that are putting pressure on their margins.

The CEOs said running their emergency generators was costing them billions in diesel and urged the government to extend the rebate to retailers.

The largest grocery retailer Shoprite spent R560m on diesel in the six months ended January 1, while Pick n Pay is spending R60m per month, according to their latest sales updates.