Motorists are expected to dig deeper at fuel pumps with the temporary relief measure to reduce the price of petrol, set to conclude at the end of this month. During his budget speech in April, Finance Minister Enoch Godongwana announced a R1.50c reduction to the general fuel levy.
Speaking on VOC’s Breakfast show on Wednesday morning, SA Automobile Association’s Layton Beard said without this relief, motorists can expect a significant increase.
“We should thank the government for the relief even though it was cushioning the blow and not taking the pain away completely. However, if the state wants to extended temporary relief measure it can but these two months that have passed have cost them [government] around R7 billion,” explained Beard.
It is predicated that Petrol users could pay between R1.93 and R1.97 more per litre. Diesel is set to go up by around R1.60 a litre. Illuminating paraffin is also expected to increase by R2.14 a litre.
“On top of all these increases we have to add the R1.50 reduction and this will have motorists exposed to significant, never before seen price hikes and it is very worrying for every single consumer in the country because we know price increase in fuel has an unfortunate ripple effect on everything else,” said Beard.
Beard explained that fuel is a big input cost for several sectors and in order to absorb these costs, these increases are passed to the consumers of goods and services. He adds that he expects the government to make announcements around possible relief measures as the month goes on.
Lastly, Beard adds that there are numerous ways in which consumers can protect themselves from further blows to their pocket.
“Car-pooling is an option but please speak to your insurer before you make that decision. Secondly, make sure your car is in good mechanical condition. Your tires need to be pumped to the manufactures recommendation. Drive at a calm speed but ultimately, if you avoid using your car you will save fuel costs,” added Beard.