Petrol price pain set to squeeze consumers

Cape Town – The hike in Petrol price and diesel prices will have a major impact on consumers, who are already struggling to make ends meet, according to debt management firm Debt Rescue.

The price of both grades of petrol will increase by 45c a litre on Wednesday. That means inland motorists will pay R13.05c/l and coastal motorists will pay R12.57c/l.

Diesel will increase by 63c/l, meaning that inland motorists will pay R11.34c/l and coastal motorists will pay R10.96c/l.

The Department of Energy said the main reasons for the hike were the contribution of the rand/US dollar exchange rate, the global increase in the prices of petrol, diesel and illuminating paraffin and the increase in the prices of crude oil.

“The worst of it is the fact that further the Petrol price increase are virtually inevitable given the fact that government is going broke and that an increase in the fuel levy will be seen as a lucrative source of income which is going to further increase the fuel price,” said Debt Rescue CEO Neil Roets.

The gradual improvement in the exchange rate has had little to no impact on the price of petrol and diesel.

“What we need is a stable economy backed by a stable political climate for the economy to grow to create jobs. Governments do not create jobs – the private sector does. Governments also do not create wealth – the private sector does but only if government creates an enabling climate.”

Roets pointed out that a remedy for consumers who have fallen into the debt quagmire can make use of debt review as a tool to allow them to repay debt in smaller instalments over a longer period of time while at the same time protecting their assets from attachment by debt collectors.

Independent economist Dawie Roodt said it was a foregone conclusion that there would be a further fuel price increase in December.

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