Guiding consumers since 2009

Inflation improves but petrol price does not

By Staff Writer

The Department of Minerals and Energy has announced that the petrol price is set to rise again on Wednesday the 2nd of September 2009 by 36 cents per litre. This is a whopping rise and may dampen any optimism caused by inflation falling. This rise will feed into the September inflation figures which are due out at the end of October 2009. Inflation has been steadily falling and is now within sight of the target band of 3 to 6 percent at 6.7 percent. Petrol is a major component of inflation and this is what the rise will cost you to fill your tank.

 

  • City Golf 49 litre tank = R 17.64 more
  • BMW 70 litre tank = R 25.20 more
  • Hilux 160 litre tank = R 57.60 more

 

These results are averaged across ULP and LRP and the coastal and inland price variations creating a base line of R 7.515 per litre, compared to a new average price of R 7.875 per litre. These amounts may seem small but they add up and increase your monthly expenses. Inflation figures have a time lag from when they are actually happening to when they are published, and what people spend on is determined by a large part by what they think they can afford. These price increases may lead to people offsetting a little something in favour of making sure they can get to work each day.

When you plan a budget it allows you to see what you have to spend on and then how much extra spending money you have left over, the petrol price increase will cause your spending money to decline. According to the Automobile Association there are 9.8 million vehicles on the road in South Africa. So if we took the average price increase as R 33.48, it is going to cost a massive R 328 104 000.00, yes R 328 million extra and that is just using an average of a small, medium and large car. Big trucks have massive fuel tanks and we can expect the cost of transport to jump given this price hike. These are scary figures that may just raise inflation again.

Recent Articles

Featured Calculate your vehicle finance instalments

You’ve dreamed of a set of wheels since you can remember, and now that you’re a responsible adult with a steady income, you’re ready to take on funding to make this dream a reality. But what kind of vehicle finance options are available to you? Justmoney gives you the rundown.

Check the interest before you take a loan

Justmoney takes a look at what influences the interest rate on a personal loan, the difference between secured and unsecured loans, and its impact on the interest rate.

One retirement, so many funds – pick the right one

Saving for retirement should be one of your priorities. However, it can be confusing to choose between a pension fund, provident fund, preservation fund, or a retirement annuity if you’re not familiar with them.

Which funeral cover lays your worries to rest?

A funeral can be as expensive as R50,000, depending on the type of funeral you want. That is why purchasing funeral cover is important. However, you don’t have to accept every offer that is put on the table. Shopping around can save you a large amount of money.

Deals

Wimpy Cheese Griller Brekkie Special

Price: R49.90
When: Until 9 September
Where: Nationwide

Mowana Spa Me Time Indulge Special

Price: R899
When: Until 31 August
Where: Fourways

Premier Hotels Weekend Getaway Special

Price: From R540
When: From 1 September
Where: Nationwide