With petrol prices being at an all time high, price predictions for August are not looking good – for the first time in South African history petrol prices may go over R16 per litre.
Efficient Group economist Dawie Roodt told Business Tech, that with the current trajectory of the rand and global oil prices, yet another 25 cents increase could be on the cards for August – or even higher, if matters get any worse.
Petrol may see an increase by 24 cents for 93 and 26 cents for 95 octane petrol, taking the price over R16 per litre for the first time ever in South Africa’s history. A petrol price increase in August would be the fifth price hike in a row since April 2018.
“We are now paying more for fuel than ever before in the history of our country and this is going to have a significant impact on the growth of the economy,” Roodt said.
Neil Roets, CEO of debt counselling group, Debt Rescue, told Business Tech the now almost monthly increases in the fuel price would add significantly to the dire circumstances faced by indebted consumers.
“Despite government promises to have another look at the 1% VAT increase, nothing has happened so far. The cost of water and electricity in Johannesburg and Cape Town is increasing, as is the price of food and pretty much everything else.”
“There is not a glimmer of hope that the massive unemployment situation is going to resolve itself anytime soon nor that the growing national debt is going to come down,” he said.
More than half of the consumers in South African are three months behind in their debt repayments and this figure is only climbing according to Roets.
Debt cancelling companies are experiencing double digit growth during these times and indicates a clear rise in debt due to the ever increasing cost of living and petrol prices.
“The harsh reality is that consumers are saddled with the burden of a collective debt of more than R1.37-trillion in outstanding loans that have not been repaid and accounts that have not been settled,” he said.
Currently motorist are paying R16.02 per litre for 95 Petrol, R15.80 per litre for 93 Petrol and R14.45 per litre for Diesel in July.