Faizel Patel, Radio Islam News – 03-07-2019
Debt Rescue says while the reduction of the petrol price on Wednesday has been welcomed, the relief is going to be short lived.
Although the price of both petrol and diesel dropped for the first time in six months, new electricity tariffs kicked in from Monday, which is expected put further strain on consumer’s finances.
Economists say the decreases in the petrol price has actually been balanced out by the increase in electricity tariffs.
Speaking to Radio Islam, Debt Rescue’s Chief Economist Neil Roets says consumers should not be celebrating just yet.
“The reality is that we’re probably going to see more price increases during the course of the year and people should brace themselves for that rather and that the money they can save now as a result of this price reduction , they must rather save for difficult times than spend it.”
Roets says the price increases in petrol and other goods and services had a devastating effect on consumers.
“We’re seeing more and more people coming over indebted and therefore having to apply for debt counselling on a daily basis.”
Roets says South Africans are fortunate that the National Credit act allow them to pay of their debt in an affordable manner without losing their assets.
Listen to the interview with Neil Roets
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