Azra Hoosen | ah@radioislam.co.za
2 April 2024 | 13:30 CAT
2 min read

As South Africa grapples with a confluence of economic challenges, including a significant hike in fuel prices, persistently high-interest rates, and escalating utility costs, citizens face an increasingly bleak financial outlook. With the rising cost of living and little relief in sight, many are bracing themselves for tougher times ahead.

Neil Roets, CEO of Debt Rescue and Economist, highlighted the unfortunate reality that our salaries aren’t keeping pace with the rising prices of goods, exacerbating financial pressures for individuals.

“It is a difficult time ahead, and we are not coming out of an easy time, with prices continuously increasing,” he said.

The price adjustments revealed by the Central Energy Fund (CEF) coincide with a period where average international prices for petrol rose, while diesel and illuminating paraffin experienced decreases during the same timeframe.

According to Roets, credit providers are enticing individuals to take out loans amidst the prevailing economic challenges, exacerbating the financial strain many face. Unfortunately, as people struggle to keep up with repayments, they risk falling into a debt trap.

“Consumers should rather use other remedies than loans. We are fortunate to have debt counselling, where you can reduce your monthly instalments to your credit providers to such an extent that you can afford to pay for living expenses. You can even place your home loan under debt review. This process also protects their assets. They should use the opportunities we, as South Africans, have,” he said.

Roets believes most people are in survival mode and cannot afford to save any extra money with all the price increases. “Research has shown that we don’t have a saving culture in South Africa, which is very unfortunate because it’s imperative to save money as an emergency fund and also for the time that will come when you cannot earn an income anymore,” he said.

He advised that it is always important to budget and build an emergency fund, no matter where you fit on the income scale. “You need to find out how to stick together as a community and come up with results. The last thing they should do is take their kids out of school because we are not doing anyone any favours,” he said.

April 2024 Fuel Prices:

• Inland Petrol Unleaded 93: R24.78 (increased from R24.13)
• Inland Petrol Unleaded 95: R25.12 (increased from R24.45)
• Coastal Petrol Unleaded 93: R24.06 (increased from R23.41)
• Coastal Petrol Unleaded 95: R24.40 (increased from R23.73)
• Inland Diesel 500 ppm: R22.45 (increased from R22.42)
• Inland Diesel 50 ppm: R22.61 (decreased from R22.62)
• Coastal Diesel 500 ppm: R21.73 (increased from R21.70)
• Coastal Diesel 50 ppm: R21.93 (decreased from R21.92)

The Central Energy Fund (CEF) announced that there will be no increases to the General Fuel and Road Accident Fund levies on petrol and diesel. However, effective from April 3, 2024, the Fuel Levy for petrol and diesel will rise to 396.0 c/l and 384.0 c/l respectively, while the Road Accident Fund Levy for both petrol and diesel will remain at 218.0 c/l.

LISTEN to the full interview with Muallimah Annisa Essack and Economist Neil Roets, CEO of Debt Rescue, here.