Further financial strain anticipated for consumers, after fuel price hike

Published on


Add Smile FM on Google

 

 

It is anticipated that consumers will feel even more strain on their pockets when the temporary fuel levy relief is reduced in the coming months.  

 

For this month, the levy for petrol was maintained at R1.10 with both grades having increased by R3,27 cents per litre, while the levy on diesel was reduced to zero, with the cost having risen by R5,27 cents per litre. This has pushed the cost of petrol to between R25,80 and R26,62 and diesel to over R30 per litre. 

 

READ MORE:  Fuel prices to surge from 6 May as global tensions push costs higher – Smile 90.4FM

 

In June, the fuel levy is expected to be R1,50 for petrol and R1,96 for diesel, with the levy set to return to R4,10 for petrol and R3,93 in July. 

 

READ MORE:  Fuel levy relief extended for May, with diesel levy reduced to zero – Smile 90.4FM

 

Because of this, the debt counselling company, Debt Rescue, predicts that the current financial pressure on consumers is likely to grow. COO Annaline van der Poel said people are now having to choose between transport, food and meeting financial obligations. 

 

“What makes this particularly concerning is that households have already adjusted their behaviour. People are driving less, cutting back where possible and trying to stretch their budgets. But there is a limit, especially when getting to work is not optional; it’s essential,” said van der Poel.  

 

With the knock-on effect of increased fuel costs, consumers can expect to see the impact in public transport fares, grocery bills and other everyday items.  

 

“Fuel prices don’t exist in isolation, they affect the cost of transport, food and essential goods. When diesel increases at this level, it drives up the cost of production and distribution across the economy, and that cost is ultimately passed on to the consumers,” said van der Poel.  

 

CEO of Debt Rescue, Neil Roets, suggested some ways consumers can alleviate some of the impact: 

 

  • Carpooling: which can free up much-needed income by reducing monthly fuel costs  
  • Use of loyalty/rewards cards: like ‘double-swiping’ (using a fuel station’s rewards card in tandem with a partnered bank or grocery loyalty programme to earn two layers of points or cashback on a single transaction) 
  • Adopting efficient driving habits: like reducing consumption by maintaining a steady 100km/h highway speed, avoiding the heavy fuel-surge of stop-start traffic through better momentum management, and grouping multiple errands into a single ‘loop’ to ensure the engine operates at its most efficient temperature. 
  • Fuel efficiency: by clearing unnecessary weight in or on the vehicle. 

 

“While the onus – rightly or wrongly – is on the man on the street to tighten his belt even further, it is essential that authorities respond with practical solutions to alleviate the financial pressure on South Africans, or we are looking at a consumer cost-of-survival crisis of immense proportions looming on the horizon,” Roets said.
Caitlin Maledo
Caitlin Maledo
Caitlin is an enthusiastic journalist, that has been exploring her interest in broadcast media since 2019. With a natural curiosity for the world around her, you'll always find her poking around hidden gems throughout Cape Town and surrounds.

Latest articles

One month on and search for Slade continues

  2 October marks one month since 22-year-old Slade Van Der Walt disappeared at Strand Beach, and he is yet to be found. On 2...

Jehovah’s Witnesses’ change policy on blood transfusions

  The Governing Body of Jehovah's Witnesses has changed its policy on blood transfusions. The Governing Body announced that each Witness, if they choose, can accept or...

Fourth victim dies in hospital, after drive-by shooting in Lentegeur

  The Western Cape SAPS has confirmed that the fourth victim, in a drive-by shooting in Lentegeur, Mitchells Plain, late Wednesday night, has succumbed to...