The record fuel price decrease will bring much needed relief to indebted consumers according to Neil Roets, CEO of debt management company Debt Rescue.
The largest petrol price drop yet will see 95 octane petrol drop by R1.23 a litre while 93 octane will decrease by R1.27 a litre.
The price of diesel will decrease by between R1.04 and R1.05 per litre.
Roets said the substantial decrease in the diesel price is actually more important than the petrol price because this might lead to a
decrease in consumer goods that are transported by road.
He said, however, that it has a predicted growth rate of less than 2% forecast for the first quarter and unemployment at record highs consumers would remain under pressure.
And according to the National Credit Regulator’s Consumer Credit Market Report (CCMR), the total outstanding gross debtor’s book is sitting at R1.47 trillion. Currently about 75% of the nett income of consumers has to be paid over to creditors which leaves very little disposable income
for families to live on.
Dawie Roodt, chief economist at Efficient Group said further fuel price decreases could be expected during the year because of the downward
slide in the crude oil price provided the Rand remained steady.