The Rising Petrol Price – How it affects Your Finances

rising-petrol-priceThe month of April sees the price of petrol in South Africa rising by a significant 71c per litre. With 95 ULP octane now costing close to R12 per litre in Gauteng and around R11.50 per litre at the coast, the impact on South African’s personal finances could see belts tightening around the country.

A Rising Trend

The past ten years has seen the petrol price increase dramatically. After rising from around R1 a litre in 1990 to just under R3 a decade later, the petrol price is now hovering close to R12 in some parts of the country – a four-fold increase in just 10 years. With the international oil price staying high, the chances of a return to cheap fuel in South Africa are very remote, and our financial planning should take this fact into account.

Budgeting For Costly Fuel

If you’re concerned about the cost of petrol and the effect it may have on your budget, you’re probably being wisely realistic. Though the petrol price may show no signs of returning to low levels anytime soon, there are several measures you can take to minimise its effect on your budget:

Use Less Petrol

This may sound difficult especially if you commute long distances every day, but there are ways to cut down your petrol consumption. Organising a lift club with work colleagues, opting for safe public transport for short trips and even considering a more fuel-efficient vehicle are ways in which you can save on petrol.

Planning your route carefully when driving and avoiding rush-hour traffic are two other ways of saving on petrol costs. If you often find yourself driving back the way you came more than once a day, think about how you could schedule your activities so that you take one efficient route that will save you a lot of fuel in the long term. The financial savings will be just as great.

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