Consumers already in debt will be faced with even harder times
when the petrol price increases by 84c a litre on Wednesday. This is
according to Neil Roets, chief executive of debt counselling firm Debt
Rescue, who said the increase would add considerably to consumer debt,
which now topped R1.44 trillion according to Statistics South Africa.
“The fuel price increase is going to be the last straw that breaks the
camel’s back for many people,” Roets said. He said it would push
thousands of consumers into debt counselling.

The number of clients seeking help from his company had almost
doubled over the past six months, he said. Like consumers and commuters,
retailers have said they do not welcome the increase. Reggie Sibiya, of
the Fuel Retailers Association, said even though motorists might not
believe it, retailers did not profit from petrol price increases.

“The fuel price hike impacts on us greatly. It affects our cash flow,
reduces our margin and reduces consumer volumes. “We don’t welcome it,
and it may seem hard to believe but we are on the motorists’ side,” he
said. Sibiya said the increase in the petrol price meant retailers would
need more capital to increase the amount they purchased in order to
increase their margins. “Consumption levels also decrease when the price
increases, as people tend to travel less,” Sibiya said.

-DAILY NEWS REPORTER