Don’t get too excited about the Petrol Price Decrease in July
Debt Rescue says while the reduction of the petrol price on Wednesday has been welcomed, the relief is going to be short lived.
Although the price of both petrol and diesel dropped for the first time in six months, new electricity tariffs kicked in from Monday, which is expected to put further strain on consumer’s finances.
Economists say the decreases in the petrol price has actually been balanced out by the increase in electricity tariffs.
Speaking to Radio Islam, Debt Rescue’s Chief Economist, Neil Roets, says consumers should not be celebrating just yet.
Neil explained that consumers are probably going to see more price increases during the course of the year. People should rather brace themselves for future increases by saving all the money they can now as a result of this price reduction.
Roets says the price increases in petrol and other goods and services had a devastating effect on consumers.
“We’re seeing more and more people becoming over indebted and therefore having to apply for debt counselling.”
Roets says South Africans are fortunate that the National Credit Act allows them to pay off their debt in an affordable manner without the risk of them losing their assets.
Listen to Neil Roets’s radio interview with Radio Islam about why the pertol price increase in July 2019 should not be celebrated just yet.