Tough road ahead with hefty fuel price hike

SOUTH Africans can expect a hefty increase in the cost of fuel come December when the price of petrol is expected to rise as much as 70c a litre and diesel 60c, according to independent economist Dawie Roodt.

“The political and economic instability in South Africa is going to keep our currency volatile. I believe that further increases in the crude oil price are likely with a further decline in the value of our currency virtually inevitable,” said Roodt.

Debt Rescue CEO Neil Roets said the fuel increase is due at a time when consumers could least afford it.

“Consumers should brace themselves for hard times ahead.”

He said the continuous increase in the diesel price was “especially bad news” due to the fact that the vast majority of consumer goods were transported by road, resulting in higher prices across the board.

“We have reached the point where consumers simply have to face the fact that they cannot maintain their lifestyles as they did in the past. It has now become a matter of survival.

“Opening more accounts and acquiring more store cards and credit cards is absolutely not the answer. The question to ask is no longer do I want this, but do I absolutely need this.”

Border-Kei Chamber of Business director Les Holbrook said: “I believe the government is robbing consumers and motorists with fuel prices. I don’t think we should be paying as much as we do.

“If the levies and taxes imposed by government were removed, I believe the price for fuel would drop by as much as R2.50 to R3. Until there is an open market in regards to fuel, we will continue to be overcharged and overtaxed.”

Holbrook recommends drivers of diesel vehicles to shop around instead of filling up at the nearest petrol station as prices can vary.