The Department of Energy has announced a massive petrol price increase for October.
After a brief hiatus with the government absorbing about R500 million of the fuel hike and only allowing 5 cents increase in September, the DoE noted on Monday that petrol prices will jump by 99 cents and R1/ litre for the two grades (93 and 95 Octane, ULP and LRP) respectively, while diesel is set for the biggest increase of R1.24/ litre for all the grades from Wednesday (3 October).
This unavoidable increase is largely due to the combination of rising world crude oil prices and a weaker rand, noted FNB.
“The earlier intervention by the DoE to limit the fuel increase to only five cents per litre to cover the costs of wage increases of frontline staff at service stations was only once off and anyway would still be unsustainable given the precarious state finances. This is certainly expected to place a further strain on consumers and will hurt consumption growth in a weak economy,” FNB said.
The SARB earlier indicated that household consumption has already fallen by 1.3% in the second quarter of 2018 as spending on goods declined particularly durables which were down 11.2%.
“Small business and the poorer households will bear the brunt as their transport costs account for a large portion of household expenditure and the consequence of a sustained fuel price increases will further erode disposable income and cause financial stress. This will force a change in spending patterns with a cut in spending on luxury items and frequency of visits to eateries.”
According to a recent Stats SA report motorists paid R270 to fill their tanks (45 litres) in 2009, and by the end of November 2011, that number was up to R485 for a 45-litre tank.
And while the price has continued to climb over the last five years, it’s the rise in 2018 that has been particularly painful. Today, it would cost R724 for a tank of petrol.
BusinessTech looked at some of the most fuel-efficient budget cars you can buy in South Africa right now.
*Average fuel consumption takes into account both urban and extra-urban travel.
Smart forfour base – R179 900
Average fuel consumption – 4.2 litres/100km
Toyota Aygo 1.0 – R166 800
Average fuel consumption – 4.3 litres/100km
Peugeot 208 1.2 Active – R199 900
Average fuel consumption – 4.3 litres/100km
Volkswagen Up 5-door 1.0 – R171 200
Average fuel consumption – 4.6 litres/100km
Suzuki Celerio 1.0 GA – R138 500
Average fuel consumption – 4.7 litres/100km
Renault Kwid 1.0 Expression – R128 900
Average fuel consumption – 4.7 litres/100km
Suzuki Swift 1.2 GA – R159 900
Average fuel consumption – 4.9 litres/100km
Kia Picanto 1.0 Start – R144 495
Average fuel consumption – 5.0 litres/100km
