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The nationwide lockdown, implemented due to the COVID-19 pandemic, has decreased the kilometres we travel every month. However, fuel prices are not likely to drop drastically in 2021. In fact, the price of petrol has increased steadily since the budget speech in February. Learn how petrol hikes impact your pocket and use our tips to make your money and kilometres go further.
According to the Automobile Association, the current petrol hikes in South Africa can be attributed to an increased optimism surrounding economic recovery as the global roll-out of COVID-19 vaccines becomes more of a reality. The following also plays a role:
- The increase in the demand for oil
- Socio-economic tensions in the Middle East
- The increase in the fuel levy in South Africa
What is the impact of fuel hikes in SA?
When the price of petrol increases, it affects more than just the amount of fuel you can get per rand. Some ways in which you may be impacted by petrol hikes could include:
Rise in public transport costs
When the price of petrol increases, South Africa’s public transport industry suffers. Not only do the drivers feel the pinch, passengers are also impacted by increased fares for both local and long-distance travel.
Mark-up on grocery prices
The higher the cost of fuel, the pricier it becomes to move produce and other items around the country. As a result, this makes the average monthly groceries for households more expensive.
Small businesses suffer
A bigger budget for petrol and other necessities means a smaller budget for luxuries. This impacts the income of smaller businesses, not only because people are making fewer purchases, but because the cost of supplies increases, too.
How can you save on petrol?
Although fuel hikes and the pinch they bring are inevitable, there are ways to cut down on your petrol usage:
Lastly, always be aware of petrol price hikes so you can budget efficiently. Be sure to make changes to your entire budget and not just your fuel allocation – be mindful of how you spend money and where you can cut back.
For more financial advice, read these helpful articles:
The information is shared on condition that readers will make their own determination, including seeking advice from a professional. E&OE.
- Shell. (n.d.). Economical Driving Tips. [online] Available at: https://www.shell.co.za/motorists/motoring-tips-and-advice/economical-driving-tips.html [Accessed 18 March 2021]
- Times Live. (2021). 11 Ways to Save on Fuel and Money in 2021. [online] Available at: https://www.timeslive.co.za/motoring/features/2021-01-13-11-ways-to-save-fuel-and-money-in-2021/ [Accessed 18 March 2021]
- Automobile Association. (2021). AA Sounds Fuel Price Warning As Oil Ticks Up. [online] Available at: https://aa.co.za/aa-sounds-fuel-price-warning-as-oil-ticks-up/ [Accessed 18 March 2021]
- African Bank. (2018). Understanding Petrol Increase. [online] Available at: https://www.africanbank.co.za/en/home/blog-landing/understanding-petrol-price-increase/ [Accessed 18 March 2021]
- Niselow, T. (2018). How the Rising Petrol Price Will Affect Your Pocket. [online] Fin24. Available at: https://www.news24.com/fin24/economy/how-the-rising-petrol-price-will-affect-your-pocket-20180517 [Accessed 18 March 2021]