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 Tax implications for capital gains

Capital gains do give rise to tax implications. We approached an expert to find out what these are.

Preparing your domestic staff for leaving your employ

We found out what measures you should take in order to ensure your domestic worker is financially secure after they leave your employ.

Can you monetise your hobby?

As with most hobby enthusiasts, you likely have spent many hours developing unique skills to perfect your passion. However, have you considered getting paid for this effort as well?

What are the interest rates on store accounts?

Opening a store account is one of the easiest ways to build your credit score. Not surprisingly, a recent report by the National Credit Regulator (NCR) found store accounts to be among the most popular credit types for South African consumers - and demand for them is growing

Deals

Thursday Prawn Special at Blowfish Restaurant

Price: R125
When: Thursdays
Where: Cape Town

Tonsorial Gents Cut and Style Deal

Price: R300
When: Tuesdays to Saturdays
Where: Cape Town

Pedicure Spring Special at Shambala Spa

Price: R390
When: Mondays to Fridays
Where: Gqeberha


Latest Guide

Guide to debt rehabilitation solutions