South African consumers are facing a financial storm as the effects of the United States (US) and Iran conflict effects start to trickle through to our shores.
What is alarming is that despite government’s efforts to try and help cushion South Africans from hefty fuel price increases by staying the fuel price levy for April, data from the latest Debt Rescue consumer survey revealed that consumers are already buckling under the pressure.
The survey was conducted amidst the April 2026 fuel and electricity price hikes, which revealed the impact of the latest price surges and how it has added financial pressure to consumers in the country.
9 out of 10 respondents polled in the survey reported that they are under serious financial strain.
People are cutting back on essential goods and services to make ends meet, with 52% of those polled saying they are facing severe financial pressure and don’t know how they will cope, while 32% will now struggle to afford the basics.
According to Neil Roets, CEO of Debt Rescue, South Africans have valiantly attempted to weather the storm of escalating costs over the past five years. However, “their wells have all but run dry,” he said.
“Another sharp increase in the fuel price will push inflation up even more, and this is likely to result in a significant slowdown in economic growth in South Africa, in turn putting severe strain on hard-working consumers due to the resultant job losses, reduced disposable income, and higher debt-servicing costs,” Roets said.
“This means that households will likely cut down on non-essential spending, creating a vicious cycle of decreased demand, which will weaken the economy further and exacerbate already high unemployment. We are heading for a meltdown,” Roets added.
Statistics South Africa released Consumer Price Index (CPI) this past week that showed inflation edged up slightly from 3% to 3.1%.
The main contributors to the higher inflation in February were housing and utilities, which increased in their contribution by 0.1 percentage point, as well as entertainment, restaurants, and accommodation services, which increased by 0.2 percentage points over the February read.
Another disturbing insight from the Debt Rescue survey is the grave impact the latest fuel and electricity price increases will have on the cost of food and household essentials.
“Steep electricity tariff hikes approved by the National Energy Regulator of South Africa (Nersa), including an 8.76% hike for Eskom customers and even higher municipal increases, effective April 2026 – are directly feeding into higher food manufacturing and retail costs,” Roets said.
The Debt Rescue Survey results concur, with 60% of respondents stating they expect a significant increase in grocery costs in the coming weeks and months, to the point that they may struggle to afford basics; while 75% believe fuel increases are significantly driving up the cost of goods and services.
“My advice to those who cannot break free from their financial constraints is to seek help from a registered debt counsellor who can assist them to manage their financial predicament. This has been a very successful solution for thousands of consumers who are plagued by over-indebtedness,” Roets said.