At the beginning of the year, the price of 95 Unleaded petrol was recorded at R20.80, with a peak reaching R21.62 in February. Since then, however, there has been a gradual decline, allowing consumers to enjoy some relief around fuel expenditures.
With many consumers feeling the strain of increased living expenses, these price cuts provide a welcome respite, allowing for budget reassessment as the holiday season approaches. It remains to be seen whether these lower prices will hold steady or if fluctuations in global oil supply may impact the figures once again in the near future.
Neil Roets, CEO of Debt Rescue, however, told Business Report that South Africans have been trapped in a relentless cost-of-living price increase cycle for most of the year, and their coffers are empty as we head towards December.
Roets said, “The small petrol price cut for November announced, no matter how welcome, will not relieve the plight of millions of South Africans, who are in serious financial distress, with household budgets leaving little leeway for any festive cheer and even less relief to take the edge off this tough year.”
“While high electricity and food prices continue to decimate household budgets, the cost of fuel has a significant influence on household’s holiday travel plans, and the impact of the steeper petrol price is that millions of people will have to sacrifice their annual trip to visit their families over the festive season, and will instead be staying at home this year, trying to rustle up some holiday cheer,” Roets added.
“Against this backdrop, The South African Reserve Bank (Sarb) has issued a warning that the ongoing US tariffs on local exports and the end of the African Growth and Opportunity Act (AGOA) will eat away at already low economic growth and cost thousands of jobs. We need to look at the toll this will take on the youth especially, who are the hardest hit by lack of employment opportunities,” Roets said.