As the conflict between Iran, the Unites States of America and Israel continues to send shockwaves across global markets and driving oil prices higher, closer to home the geo political tensions spells disaster for South African consumers.
Neil Roets, CEO of Debt Rescue said that while a 20 cent increase in petrol and the sharper rise in diesel may appear modest on paper, the knock-on effect across the economy will be significant. He noted that households are already contending with high interest rates, elevated food costs and persistent debt obligations.
With the repo rate remaining at 6.75%, many bondholders and vehicle finance customers are paying substantially more each month than they did just a few years ago.
“Disposable income has been steadily eroded. For many families, there is simply no buffer left to absorb additional increases,” Roets added.
The timing is particularly difficult with the Easter period approaching, when many families traditionally travel to visit relatives.
“For millions of South Africans, even short-distance travel is becoming financially unviable. What should be a time of connection and rest is instead overshadowed by budget anxiety,” he said.
Roets warned that sustained fuel increases, combined with global geopolitical pressures and domestic economic constraints, risk deepening the financial vulnerability of already over-indebted consumers. He urged households who are struggling to seek assistance sooner rather than later, emphasising that early intervention can prevent long-term financial damage.