With the petrol price hitting a record high at midnight on Tuesday, economist Dawie Roodt says things are not looking any better for August.
Petrol will be increasing by 24 cents and 26 cents for 93 and 95 octane petrol at midnight, taking the price over R16 per litre for the first time in South Africa’s history.
Efficient Group economist Dawie Roodt said 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 it gets any worse.
“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.
Another petrol price hike in August would make it five consecutive months of hikes since April 2018.
Neil Roets, CEO of debt counselling group, Debt Rescue, said 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.
According to Roets, more than half of consumers are three months or more in arrears with their debt repayments and this figure is expected to keep climbing steadily as South Africans are getting deeper and deeper in debt.
He said his company, and others like it, were experiencing “double digit growth” because so many South Africans were getting into trouble with their debt.
“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.
Below is the official petrol price for July 2018, which kicks in at midnight.
This is what you can expect to pay:
|Fuel||June official||July official|
|0.05% Diesel (wholesale)||R14.19||R14.45|