Neil Roets, CEO of Debt Rescue, said that the latest fuel price changes highlight the growing strain on consumers who have little room left in their budgets to absorb additional costs.
“For many South Africans, the June fuel price adjustment feels like taking one step forward and two steps back,” said Roets.
“What makes this increase particularly difficult is the timing. Consumers have barely had an opportunity to absorb the recent 0.25% interest rate hike and are now confronted with another increase relating to a major monthly expense,” he said.
“The danger is that people often look at individual increases in isolation. A higher petrol bill may not seem catastrophic on its own. A slightly higher bond repayment may appear manageable. However, consumers do not experience these costs separately. They experience them collectively.”
He added that many families have already exhausted traditional cost cutting measures.
“Over the past few years, families have already cut discretionary spending, reduced entertainment budgets, postponed purchases and sought cheaper alternatives wherever possible. The ability to absorb additional increases is becoming increasingly limited.”