How and Why Fuel Price Increases in 2019 Will Affect South Africans’ Wallets: How to Save
How and Why Fuel
Price Increases in 2019 Will Affect South Africans’ Wallets: How to Save
South Africans just don’t seem to be able to catch a break.
Everything seems to be getting more expensive – from electricity costs, to fuel
taxes, to DSTV. We’ve seen three increases in fuel prices in 2019 alone. Countless
people are worried, frustrated and downright angry, and rightfully so. Compared
to other countries, South African fuel costs are ridiculously high. Did you
know that in Venezuela, a litre of fuel costs less than R1? Granted, Venezuela
has its own problems, but this massive difference in price makes us wonder
exactly why South Africans are paying so much for fuel and why it just keeps
getting more expensive.
South African taxes on fuel increased by 220% since 2008
from R1.76 to R5.63 in 2019. Fuel prices have also increased staggeringly in
the past 11 years. August 2008 saw fuel prices sitting at around R8 a litre,
whereas April 2019 clocks in at just under R16. Minister of Energy, Jeff Radebe,
has blamed the rise in international crude oil prices for these increases, but
what else is contributing?
While the rise of crude oil prices across the globe
definitely plays the leading role, here are 3 other factors that lead to higher costs.
- The international supply and demand for petroleum products
- Freight costs involved in shipping fuel to refining centres from export centres in the Mediterranean, the Arab Gulf and Singapore
- Ocean loss that occurs when ships that transport fuel take damage to their hulls.
How is this going to
affect you?
We all know that an increase in fuel price usually leads to
an increase of well, the costs of everything else. It starts a cruel cycle of
rising costs. More expensive fuel leads to increased transport costs (as well
as shipping costs and public transport prices), which in turn leads to
increased product costs and to higher costs of living in general. Everyone is
affected by it, from small business owners to farmers and everyone in between. This
means that every South African now needs to tighten their budgets, limit their
spending, and hope for the best. While there isn’t anything you can do to lower
the cost of petrol itself, you can have a bit more control over how badly it
affects your budget.
What can you do to
stay afloat and still save money?
Maintaining your car
is one of the most important things you can do in the face of fuel increases.
Your car doesn’t need to be falling apart for you to have to take it in for a
check-up. Make sure that your tyres are inflated properly and well aligned.
Flat tyres increase resistance on the road and increase your fuel consumption.
A well-maintained car is also less likely to break down, which would cost you a
fortune all at once.
Driving efficiently
might sound a bit strange, but it could help you get better mileage. Try to
average 90km/h when driving on an open road instead of speeding. Speeding has
been proven to consume more fuel than driving at a lower speed. This also goes
for braking and accelerating sharply. Try to keep a larger following distance
so that you can brake and accelerate gradually instead. Also make sure you only
use your air-conditioning when driving over 80km/h, if you can.
Sharing a ride with
others means taking your car and giving a few friends a lift and splitting
the costs, or taking public transport every day. Public transport not only
gives you more time to yourself on the way to campus or work, but its also a
lot better for the environment.
Not driving at all
seems to defeat the purpose, but driving only when you need to saves a
significant amount of fuel each month. Instead of driving to nearby places, why
not cycle or walk? You’ll be doing your health, your pocket and the environment
a favour.
Learning how to budget not only teaches
you to manage exactly where your money is going, but it also strangely gives
you more freedom. Having a budget that you actually stick to gives you a clear
indication on how much you’re spending on what and how much you can save.
The last piece of advice we would like to give to our
readers is to stay positive. It
might seem completely arbitrary, but staying positive in the face of adversity
might be one of your most valuable skills for the months to come. Share your
advice with others and be open to new suggestions. If you have any suggestions
or tips that would help others save fuel and/or money, leave a comment below.
If you’d like to contribute an article instead, contact us on our website and
we’ll be happy to discuss new content! As always, drive safely!
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