Latest news with #95Unleaded
IOL News
a day ago
- Business
- IOL News
Fuel price rollercoaster continues to impact South African households
A fuel station attendant fills a car with fuel while a dog in the car looks on. While petrol prices drop by 28 cents in August, the sharp increase in diesel costs threatens to worsen South Africa's economic strain. Experts warn that these mixed fuel adjustments, combined with US tariff hikes and record household debt levels, paint a bleak financial outlook for consumers already struggling to make ends meet. Image: Independent Newspapers Archives While consumers in South Africa who are paying back loans were given some financial relief after the South African Reserve Bank (Sarb) cut interest rates, fuel price adjustments for August brings a mixed bag. This past week, the Minister of Mineral and Petroleum Resources announced that from Wednesday, August 6, both grades of petrol decreased by 28 cents, while diesel went up by between 63 cents (50ppm) and 65 cents (500ppm). That means petrol 95 Unleaded will now cost R20.80 at the coast and R21.59 in Gauteng, where the slightly less expensive 93 ULP will retail for R21.51. The wholesale price of 50ppm diesel will reach R19.28 at the coast and R20.04 inland. While the decrease in the price of petrol has been welcomed by some motorists, Neil Roets, CEO of Debt Rescue, said that the broader economic outlook for South Africans remains bleak. 'This fuel price rollercoaster is not easing pressure, it's compounding it. Households are already under extreme strain, and these erratic fluctuations only add to the financial distress,' he told Business Report. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Roets added that the relief felt by petrol users is offset by the sharp diesel price hike of up to 65 cents per litre, which will affect key sectors such as agriculture, logistics, and public transport. 'These ripple effects will inevitably feed into food prices and transport costs, putting even more pressure on working families,' Roets said. Adding to these concerns is the impact of the newly imposed 30% US tariff hike on South African exports. 'This move poses a serious threat to the broader economy, particularly sectors like manufacturing, agriculture, and mining, which are already grappling with rising input costs. If export volumes decline, we could see knock-on effects including job losses and even greater household vulnerability,' Roets said. He further said that with household debt levels already among the highest in the world, and with overdue debt now surpassing R208 billion, South African consumers are being hit from all sides. Roets said the current economic environment is becoming increasingly unstable, with warning signs flashing across every major financial indicator. Meanwhile, Hayley Parry, Money Coach and Facilitator at 1Life's Truth About Money said that the recent interest rate cut was good news for South Africans with debt. "Although the 25 Basis Point decrease does not sound like much from a consumer perspective, there are some interesting opportunities that are presented to us. This means if you take out a R1 million home loan, you will be paying R9 984 per month on that home loan to pay it off for the next 20 years. This means a month ago you would have been paying R168 more on that loan per month. The R168 difference may not sound like a lot, but this is where the power of compound interest comes into play," Parry said. "It is important to get financial education in order to understand what compound interest is and does for consumers. For example, the R168 may not make that much of a difference in paying off your home loan. If you kept your home loan repayment on what it is today, rather than what it will drop by to tomorrow, over the course of 20-year home loan, you will be able to save you more than R89,000 and over a years' worth of repayments. This means you would pay off your home loan in less than 19 years instead of 20 years," she further said. "You will end up saving a significant amount of money in the long run. My challenge to consumers in light of this interest rate reduction is to continue making the same payments they were making before whether it is on a car, home loan, or credit cards. This will help them pay off their debt faster and, once it is cleared, free their monthly cash flow going forward," Parry said. BUSINESS REPORT
IOL News
6 days ago
- Business
- IOL News
August fuel price adjustments: What petrol and diesel owners need to know
The August fuel price outlook is a mixed bag as motorists are set to fork out more for diesel. Image: Jacques Naude / Independent Media Motorists can look forward to a much-needed reduction in petrol prices at the pumps this Wednesday, whereas diesel prices are set to see a substantial rise. Month-end data from the Central Energy Fund (CEF) is pointing to petrol price decreases of 29 cents for 95 Unleaded and 33 cents for 93 Unleaded, while diesel prices are expected to rise by between 63 cents (50ppm) and 66 cents (500ppm). This follows July's petrol and diesel price increases of up to 55 cents and 84 cents, respectively. In the case of petrol, 95 Unleaded should recede to around R20.79 at the coast and R21.58 in Gauteng, where the slightly less expensive 93 ULP is expected to retail for R21.46. The wholesale price of 50ppm diesel is predicted to reach R19.28 at the coast and R20.04 inland. International product price movements are the driving force behind the August price adjustments, while a slightly stronger South African rand provided relief to the tune of around five cents. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading It's not unusual for diesel prices to rise during the winter and summer months, due to international demand patterns. In the northern hemisphere's summer, for instance, increased travel and economic activity can drive up prices. However, the main reason for the mid-2025 surge in diesel prices is due to the European Union's restrictions on Russian fuel, Total Energy CEO Patrick Pouyanne told Bloomberg. 'We think that stronger diesel prices will become a persistent feature on the global market,' he said. 'The sources of diesel are now coming from the Middle East or from US refineries further away, so it has increased the cost,' Pouyanne said. Following the August price adjustment, 50ppm diesel will be around 60 cents more expensive than it was at the beginning of this year. 95 Unleaded petrol, on the other hand, will be priced almost identically to its January 2025 level of R20.80. Both petrol and diesel have seen two increases and four decreases this year. Get your news on the go, click here to join the Cape Argus News WhatsApp channel. Cape Argus
