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Cape Town - It's been a tough year for SA consumers, with no shortage of fuel hikes and price shocks.
Efficient Group chief economist Dawie Roodt told Fin24 that the economy's dismal performance in 2013 has put consumers under considerable strain.
Roodt said earlier: "It has probably been the most difficult year for consumers since 2007/8... Retail sales are already slowing down and that is a sign that consumers are under pressure."
He anticipated a lacklustre festive retail season, and believed a petrol hike was on the cards for January.
Debt Rescue CEO Neil Roets told Fin24 that the latest petrol price increase together with the roll-out of e-tolls would have a devastating effect on consumers, which is likely to have the greatest impact on the middle and lower income groups.
"The combination of these price hikes will have a very negative impact on the finances of South African households, especially with the festive season under way as people tend to spend more money during this time."
The Automobile Association of SA (AA) has warned that the price of petrol is set for a steep hike at the beginning of 2014.
"Unless there is a substantial turnaround in the exchange rate before the end of December, South African motorists will have to brace themselves for more pain at the pumps," said AA spokesperson Graeme Scala.
This has proved to be the cherry on top for many Fin24 users. Cheslyn Clarke writes: "The people who are involved with the petrol price in South Africa are with government, who is surely taking this country backwards.
"So whether the value of the ZAR increases to the US dollar, we would still have an increase in petrol. It just doesn’t make sense... I really feel sorry for the children of this country and their future."
Eskom's lack of foresight in providing for rising demand is another sore point, says Clarke. If the power utility could not see the need to keep up with technology and an increased population, "they couldn’t foresee a bright future for this country".
Jaco Diener agrees. He says: "It is getting really ridiculous. The problems continue to rise. With all the increases, they still want to add toll fees as well. What are they doing with all the money they make on taxes, etc? The public is battling as there is no decent and safe alternative transport.
"Every month one hears of increase after increase. The wealthy don't get bothered. It is the average Joe in the street who has to squeeze the pennies to ensure that there is food, a roof over their heads and fuel for the month."
It is a very sad state of affairs that food and fuel prices just continue to go up and up, writes Ann Naidoo. She says: "We budget according to our earnings, whereby our expenses must not exceed our earnings.
"How does one manage to get the extra cash to pay for the price hikes if we get an increase once a year, which does not even help with the constant price hikes?
"Please can someone make sense of this vicious world we living in?"
Peopl would still manage to live within their means if salaries could increase "every time food or fuel prices rocket", says Naidoo.
"Unfortunately, we only get a small percentage in our annual increase, which does not make provision for fluctuating price hikes. I wish a long-term solution could be found."
Russel Roth feels there's a whiff of corruption in the air: "I think the biggest problem with the price hikes is the link to corruption - politicians are lining their pockets at the expense of taxpayers!"
Ayanda Masina says she has been forced into a vehicle downgrade: "I drive a Fortuner 3.0 D4D and a Range Rover 5.0 Supercharger, but the recent fuel hikes have forced me to look for a Polo BlueMotion, which I'm taking delivery of today."
In the end, says Masina, because fuel takes most of our income "you end up spending more money on fuel than what you pay for the car itself".
Fanie Brink says "Apart from corruption, the big fat cats are the oil companies who get controlled, guaranteed and very lucrative margins on fuel and the more filling stations they build, the higher their reward on their marketing assets."
He believes the biggest problem was created "during the period 2007 to 2009 when the Reserve Bank kept on increasing the interest rate on the back of the much higher international crude oil and food prices, while local interest rates could not do anything to curb price increases in the international market".
South Africa's petrol price is in total control of the government, says Brink. This means that even if consumers cut fuel consumption by 50%, it won't bring down the local price if the international price increases or the exchange rate depreciates.
"Fortunately the Reserve Bank has come to their senses to keep the interest lower with higher stability. Unfortunately all consumers have been punished by the Reserve Bank during 2007 to 2009 and they are struggling because of this stupid policy," says Brink.
- Fin24
Disclaimer: All articles and letters published on MyFin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.
Efficient Group chief economist Dawie Roodt told Fin24 that the economy's dismal performance in 2013 has put consumers under considerable strain.
Roodt said earlier: "It has probably been the most difficult year for consumers since 2007/8... Retail sales are already slowing down and that is a sign that consumers are under pressure."
He anticipated a lacklustre festive retail season, and believed a petrol hike was on the cards for January.
Debt Rescue CEO Neil Roets told Fin24 that the latest petrol price increase together with the roll-out of e-tolls would have a devastating effect on consumers, which is likely to have the greatest impact on the middle and lower income groups.
"The combination of these price hikes will have a very negative impact on the finances of South African households, especially with the festive season under way as people tend to spend more money during this time."
The Automobile Association of SA (AA) has warned that the price of petrol is set for a steep hike at the beginning of 2014.
"Unless there is a substantial turnaround in the exchange rate before the end of December, South African motorists will have to brace themselves for more pain at the pumps," said AA spokesperson Graeme Scala.
This has proved to be the cherry on top for many Fin24 users. Cheslyn Clarke writes: "The people who are involved with the petrol price in South Africa are with government, who is surely taking this country backwards.
"So whether the value of the ZAR increases to the US dollar, we would still have an increase in petrol. It just doesn’t make sense... I really feel sorry for the children of this country and their future."
Eskom's lack of foresight in providing for rising demand is another sore point, says Clarke. If the power utility could not see the need to keep up with technology and an increased population, "they couldn’t foresee a bright future for this country".
Jaco Diener agrees. He says: "It is getting really ridiculous. The problems continue to rise. With all the increases, they still want to add toll fees as well. What are they doing with all the money they make on taxes, etc? The public is battling as there is no decent and safe alternative transport.
"Every month one hears of increase after increase. The wealthy don't get bothered. It is the average Joe in the street who has to squeeze the pennies to ensure that there is food, a roof over their heads and fuel for the month."
It is a very sad state of affairs that food and fuel prices just continue to go up and up, writes Ann Naidoo. She says: "We budget according to our earnings, whereby our expenses must not exceed our earnings.
"How does one manage to get the extra cash to pay for the price hikes if we get an increase once a year, which does not even help with the constant price hikes?
"Please can someone make sense of this vicious world we living in?"
Peopl would still manage to live within their means if salaries could increase "every time food or fuel prices rocket", says Naidoo.
"Unfortunately, we only get a small percentage in our annual increase, which does not make provision for fluctuating price hikes. I wish a long-term solution could be found."
Russel Roth feels there's a whiff of corruption in the air: "I think the biggest problem with the price hikes is the link to corruption - politicians are lining their pockets at the expense of taxpayers!"
Ayanda Masina says she has been forced into a vehicle downgrade: "I drive a Fortuner 3.0 D4D and a Range Rover 5.0 Supercharger, but the recent fuel hikes have forced me to look for a Polo BlueMotion, which I'm taking delivery of today."
In the end, says Masina, because fuel takes most of our income "you end up spending more money on fuel than what you pay for the car itself".
Fanie Brink says "Apart from corruption, the big fat cats are the oil companies who get controlled, guaranteed and very lucrative margins on fuel and the more filling stations they build, the higher their reward on their marketing assets."
He believes the biggest problem was created "during the period 2007 to 2009 when the Reserve Bank kept on increasing the interest rate on the back of the much higher international crude oil and food prices, while local interest rates could not do anything to curb price increases in the international market".
South Africa's petrol price is in total control of the government, says Brink. This means that even if consumers cut fuel consumption by 50%, it won't bring down the local price if the international price increases or the exchange rate depreciates.
"Fortunately the Reserve Bank has come to their senses to keep the interest lower with higher stability. Unfortunately all consumers have been punished by the Reserve Bank during 2007 to 2009 and they are struggling because of this stupid policy," says Brink.
- Fin24
Disclaimer: All articles and letters published on MyFin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.
