Looming Fuel Crisis Raises Concerns for Economists: “Time to Start Riding Bikes”

• Economists have raised concerns over the rising petrol prices in South Africa which they predict will negatively affect households
• Speaking to a well-known publication, Dawie Roodt and Neil Roets shared similar opinions about the fuel cost in Mzansi and the global energy crisis
• Briefly News shared a post on Facebook about the fuel crisis where our readers came through with their thoughts and opinions

DURBAN - Chief Economist at the Efficient Group (a JSE-listed financial services company) Dawie Roodt, has revealed that the rising petrol price in Mzansi and the global energy crisis will soon add pressure on South Africans.

Similarly, Chief Executive of Debt Rescue Neil Roets stated that SA's excessive fuel costs are one of the most important causes of diesel increasing by 69% and petrol by 85% since 2011. Broken down, this translates to a 50-litre tank of petrol costing over R915 versus it being under R500, 10 years ago.

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Roets explained that the country is entering the last quarter of the year and customers are now looking forward to the holiday season. However, abrupt and intense price increases are expected across the board.

A report by BusinessTech revealed that patrons will have to deal with the emerging energy crisis which is expected to impact the economy globally. Roodt went on to explain that the increasing price of Brent Crude, coal and gas prices will push the price of electricity over the board.

According to SABC News, various economists have warned consumers that the increase in petrol prices will negatively affect households. The report brought up the inland rise in petrol which brought the cost to R18 per litre.

Briefly News' readers respond to the looming petrol crisis

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Leo Christopher Wyatt Jr wrote:

"The petrol prices in SA are Higher than Snoop Dogg is on weed."

Tsebe Gore Oreng shared:

"Time for electric vehicles."

Aladiah Geswind said:

"Time to start riding bikes. Somebody bless me with one."

Fuel hikes in the country could possibly be curbed by foreign investments

Previously, Briefly News reported that fuel hikes under fairly stable economic conditions are exasperating enough for the ordinary consumer. Contending with high fuel costs under the present bleak economic times can be overwhelming for many South African consumers.

South Africa’s Department of Energy increased the petrol price by 26c this week (7 July) bringing the inland petrol price to R17.39 per litre and R16.66 in coastal towns. Diesel, now costing R15.09 per litre, increased by 42c. The price of illuminated paraffin increased by 36c and is now priced at R9.13 per litre.

Ms Meshel Muzuva, an Economics academic at MANCOSA (Management College of Southern Africa) attributes South Africa’s surge in fuel costs to the sharp increase in global crude oil prices which stands at approximately $75 per barrel, its highest since 2018.

Source: Briefly News