Guiding consumers since 2009

Petrol price hikes up 41 cents a litre

By Staff Writer

Motorists are bracing themselves for a petrol price hike due this week. From Wednesday, (6 February 2013) the petrol price will go up by 41 cents a litre according to the Department of Energy, while the cost of diesel will go up by 17.08 cents a litre.


Commentators predict that this will be the first of many petrol price increases that consumers will see this year. This month, motorists will suffer more thanks to the predicted increases in the fuel levy, which is likely to be announced in the Minister of Finance’s budget which will further add to the cost of motoring and also transportation of commodities.


“From a transportation point of view, 2013 is set to become a very expensive year for the consumer. Indications are that not only will the cost of fuel be higher this year, but the increased cost of vehicle licensing and toll fees will significantly add to the transport burden of the motorist,” said Gary Ronald, head of public affairs at the AA.


No way out
The AA has in the past provided sound advice on how motorists can adapt their driving behaviour to save more on petrol but other than using these tactics (click here) there’s not much motorists can do to curb the costs.


“Car pooling can help and is an option for those that can do it. People can also downscale to get a more fuel efficient car but not many people can afford to do that,” said Ronald.


Ronald added that the price hikes and pressure from consumers may compel the government to find a fuel efficient alternative. However, when asked about electric vehicles he pointed out that again consumers are put on the back foot thanks to the potential 16% price hike that Eskom is seeking over the next five years. “Electric cars are still expensive. If you can buy one it may save you money but if Eskom gets its way it may not,” he said.


Reasons behind the hike

The debt crisis and the Rand/Dollar exchange rate were cited as reasons for the latest hike in petrol prices. “During the current fuel price review period (27 December 2012 to 31 January 2013), the average Brent crude oil price increased, compared to the previous fuel price review period. The uncertainty surrounding the debt crisis in the United States and the fact that Saudi Arabia cut crude oil output by 650,000 b/d over the past couple of months to reduce surplus supply in the market contributed to higher crude oil prices,” said Thandiwe Maimane, Spokesperson for the Department of Energy.


Maimane added: “Since the 4th of January 2013, the Rand/Dollar exchange rate deteriorated and peaked at R9.06 per US Dollar on 24 January 2013. The deterioration in the Rand against the US Dollar contributed to an increase in the fuel prices by 1.16 c/l.”

Recent Articles

Featured What happens to your finances when the interest rate drops?

An interest rate cut simply means that the cost of borrowing is lower, and therefore cheaper. This is sometimes a tool used to encourage economic growth. But what does such a cut mean for your finances?

Raise a deposit for your house in 5 steps

If you’re a first-time home buyer, you could be lucky enough to be  approved for a 100% bond, but if you aren’t, a 10% deposit might be required. This  could be a daunting prospect.  However, a few financial tweaks to your lifestyle and spending habits could get you a foot in the property door and, once you’ve purchased a property, significantly reduce your long-term bond repayments.

Get personal with your finances – and tie the knot

As time passes, your financial products may not live up to your needs. Therefore, it’s important to take stock of what you’re paying for and adjust where necessary. We got in touch with financial advisers to find out how you can get your finances in order, and what you should do to ensure you’re financially stable.

Personal loan or business loan? The best way to finance your business

When starting your own business, you may have to rely on external funding. Perhaps you qualify for a personal loan, but would it be better to take out a business loan instead? We got in touch with a specialist to find out whether it’s best to take out a business loan or a personal loan to assist you with your ongoing business or start-up.

Deals

Cash Rewards up to 20% when you swipe your Absa Card at Spar

Price: Available on request
When: Daily
Where: Nationwide

The Royal Elephant Hotel Valentine's Day Special

Price: Available on request
When: 14 February 2020
Where: Centurion

Premier Hotels Vegan Dinner Special

Price: R225 per person
When: Monthly
Where: Nationwide