Neil Roets, Chief Executive Officer of Debt Rescue, warned that the increase signals “imminent disaster” for South African households already under financial strain.
“The reality is that the latest petrol price disaster exposes the extent of a far deeper cost-of-living crisis, driven by the fuel price increases, higher electricity and water tariffs and ongoing food inflation, which has pushed people to the very limits of their financial resources. This is deeply concerning.”
He said the increases are already impacting daily life, with higher transport, food and living costs.
THE KNOCK-ON EFFECT
The country’s agricultural industry, which mostly runs on diesel, is among the hardest hit by the jump in fuel prices, and this will have devastating consequences for consumers, especially those in the lower-income range.
“The spiralling oil prices have triggered a severe economic impact in South Africa, creating a ‘cost of survival’ crisis for consumers and heavily taxing the agricultural sector. This is because fuel price hikes are raising production costs and driving up food prices,” notes Roets.
ALTERNATIVE SOLUTIONS
Roets said while the petrol price hikes may be out of our control, there are practical ways to stretch every litre a little further:
- One of the most practical solutions is carpooling with friends or colleagues, as this can have a significant impact on monthly petrol costs, freeing up much-needed income.
- Use loyalty cards to combat record-high prices: focusing on “double-swiping” using a fuel station’s rewards card together with a partnered bank or grocery loyalty programme to earn two layers of points or cashback on a single transaction can save a meaningful amount every month.
- Motorists can adopt efficient driving habits such as maintaining a steady 100km/h highway speed, avoiding the heavy fuel-surge of stop-start traffic through better momentum management, and grouping multiple errands into a single loop to ensure the engine operates at its most efficient temperature.
- Fuel efficiency can be improved by removing empty roof racks or bike carriers to reduce wind drag and clearing unnecessary weight from the boot.
Roets advised consumers who cannot break free from their financial constraints to seek help from a registered debt counsellor who can assist them in managing their financial predicament.