South Africans are paying almost R16 for a litre of petrol effective from Wednesday, the highest price for petrol ever.
But producer Bruce Hong has made some calculation and says that it is making less of a dent to your pocket compared to 2014 prices at least.
He says if we take into account what petrol factors into our monthly wage, whether or not the rate in which petrol has gone up surpasses Consumer Price Inflation (CPI), we would realise that it's still relatively fair.
I did some calculations and the previous fuel price that stood out for me was in April 2014 when it reached R14.33 per litre.— Bruce Hong, CapeTalk Producer
So I calculated trying to see how much petrol had gone up by in the last 51 months, It turns out that it went up by an annual increase of 1.74% which is below CPI (inflation rate).— Bruce Hong, CapeTalk Producer
And if you are fortunate enough to have an inflation related increase of between 5 and 6% you are better off.— Bruce Hong, CapeTalk Producer
To hear more of this analysis from Bruce Hong, listen below:
This article first appeared on CapeTalk : Opinion: Petrol price hike is only a fraction of your annual increase