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September will see a massive 4% fuel price increase. Consumers are warned to save their pennies to ensure that they don’t feel the pinch.
If you thought things in this country couldn't get any worse, you can expect yet another increase.
September will see another price hike which could serve to affect you - the consumer.
The reason for the petrol price increase is due to the rising price of oil. The Rand has also weakened to the US Dollar by an average of 20 cents from the start of August. This has also played a role in the increase.
So now what?
Do you know the difference between 93 and 95 petrol? We have the low-down here!
What Can Consumers Expect?
Motorists are currently paying 95 Unleaded petrol R13.05 in Gauteng and R12.56 at the coast. With the increase in place, you will be paying 63 cents more for petrol, 57 cents for diesel and 58 cents more for illuminating paraffin. Although this might not seem a lot, this is expected to increase inflation by 6.9%. This means that product and service prices will steadily increase, putting unnecessary pressure on the consumer. Local Economist, Mike Schussler is however not worried, despite the massive increase and the overall impact that the fuel price rise will have on the country."In August/ September prices go up and they fall around December/ January. One can expect that this increase will remain, but I think we can expect a fall towards the end of the year."Schussler explains that the international impact is around this time of the year as it is winter in the Northern Hemisphere, so they will using more oil. The Northern Hemisphere is the biggest user of fuel in the world!
How much is the average family spending during the month? We found out!
How Does This Affect You?
You might, in the long term, be losing out a a good few bucks as most of the it will now be going to travelling."The average person will use around 140 litres of petrol a month, then the increase is going to mean an extra R82 on their petrol allowance," explains Schussler.This will in turn affect the retailers as people will be spending less money there, and rather have to put that into their petrol allowance. Many of the industries in South Africa will suffer if the increase is sustained long term. The transport industry in particular, will have to increase their fares, making travelling a whole lot more pricey. Not only that, but the aviation industry will also take a hit which means no more R3 air ticket sales for the next while. We can only hope that Schussler's predictions are right and that this is a seasonal increase and that it will decrease towards the end of 2017. In the meantime, grab your last burger or piece of sushi before we feel the petrol pinch!
Needing more cash to fill up for the month? Why don't you start saving on your car insurance premiums today!