Johannesburg – A fuel price decrease will lighten the burden for heavily-indebted South Africans, a debt management firm said on Monday.
“South Africa is a deeply indebted country with the total consumer debt totalling R1.47 trillion,” Debt Rescue CEO Neil Roets said in a statement.
The decrease, announced by the energy department on Friday, would however have little impact on the more than 25% of South Africans who were unemployed.
“With more than a quarter of the country’s workforce unemployed, it is going to take much more than a drop of 22 cents to bring meaningful relief to consumers who are falling into debt.”
The price of all grades of petrol would drop by 22 cents a litre (c/l) on Wednesday. The price of diesel with 0.05% sulphur would decrease by 23.58 c/l and that of diesel with 0.005% sulphur by 25.58 c/l.
The wholesale illuminating paraffin price would drop by 10 c/l and that of illuminating paraffin by 13 c/l.
The maximum retail price for LP Gas would fall by 27 c/l.
Dawie Roodt, an independent economist with the Efficient Group said there might be further petrol decreases down the road if the rand continues to improve against the US dollar.
“Our currency has been performing well against the dollar and there is every indication that this will continue to be the case for the foreseeable future. This will result in further decreases.”