Hannah Omarjee | email@example.com
2 May 2023 | 17:00 CAT
2 min read
As South Africans struggle with a high cost of living and an energy crisis, the Department of Mineral Resources and Energy is anticipated to announce this month’s revised fuel prices. The cost of petrol is expected to increase beyond R23 per litre, whereas the cost of diesel is anticipated to fall by between 31 cents and 57 cents per litre. The price of illuminating paraffin will decrease by approximately 32 cents per litre. According to the Automobile Association (AA), the decline in diesel and paraffin prices is welcome news as the country approaches winter. Consumers are advised to adjust their budgets accordingly as the hike in petrol prices will put even more strain on already stressed budgets. Dawie Roodt, Chief Economist at Efficient Group, in conversation with Radio Islam International, provided more insight on the issue.
According to Roodt, South Africa’s per capita income has decreased over the past decade, resulting in high levels of unemployment and poverty. Roodt said, “And what is particularly concerning, we have absolute poverty in South Africa as well. That means people are going to bed hungry.” The average South African finds themselves in a very uncomfortable financial position. Various institutions, including the Reserve Bank, the World Bank, and the International Monetary Fund, estimate South Africa will not experience economic growth in 2023. Roodt suggests that the country may already be in a recession.
According to Roodt, “We’ve got a government that is exceptional, let’s call a spade, a spade, incompetent,” which he believes is why the South African economy isn’t growing, despite the country’s access to natural resources. South Africa must fix its political issues before it can fix the economy.
According to Roodt, the best way for the average South African to prepare for the next few months and interest rate increases is to assess their financial position. This can be done by creating regularly reviewed budgets to understand one’s financial situation. Another vital aspect is holding onto one’s job, as job opportunities are scarce in South Africa. South Africans don’t have any other choice but to tighten their belts even further.
Listen to the full interview on the Daily Round-Up with Ml Junaid Kharsany here