How Tuesday's petrol price hike effects you

Kieno Kammies talks to economist Lullu Krugel about the effects of the petrol price increase which came into effect on Tuesday night.

The reason for the hike was the weaker rand and the rise of oil prices internationally.

The important thing is also the knock-on effect it will have on other prices in the economy.

Lullu Krugel, Economist - Price Waterhouse Cooper

The fuel price levy and road accident fund levy are also set to rise in April, and a carbon tax increase in June.

Read: 4 tax hikes taking effect from March will burden consumers further

Transport costs form the most important component of the products we buy in stores.

Lullu Krugel, Economist - Price Waterhouse Cooper

Often retailers do not absorb these additional costs and prices rise.

This will impact public transport costs as well.

At least we are not at the crisis we were in October. We are at least R2 lower than that. It is a bit of relief.

Lullu Krugel, Economist - Price Waterhouse Cooper

She argues that certain items do eventually lower in price when fuel prices drop, but agrees many do not.

Prices remain inflated.

Lullu Krugel, Economist - Price Waterhouse Cooper

Food remains the largest spend in a South African household, she says.

It can be as much as 40% of expenditure, even half, in a lower income household.

Lullu Krugel, Economist - Price Waterhouse Cooper

She says the answer is to budget and shop wisely for the best prices.

Take a listen:


This article first appeared on CapeTalk : How Tuesday's petrol price hike effects you


Recommended

by NEWSROOM AI
Read More
 Allow farmers to go off the Eskom grid and turn to solar power - Agri SA

Allow farmers to go off the Eskom grid and turn to solar power - Agri SA

Agri SA’s Nicol Jansen, explains how SA's agricultural industry could benefit if more farms were allowed to go off the Eskom grid.

NG Kerk minister condemned for showing solidarity with Christchurch victims

NG Kerk minister condemned for showing solidarity with Christchurch victims

NG Kerk dominee Riaan de Villiers says he was told he is not allowed to call Muslims our brother and sisters, and children of God.

Rescue mission continues in Mozambique as disaster relief organisations step in

Rescue mission continues in Mozambique as disaster relief organisations step in

Gift of the Givers continues to rescue desperate people of Mozambique who were clinging to trees after cyclone Idai hit the country.

'Pay As You Gas' stations breaks 5kg barrier, making gas affordable this winter

'Pay As You Gas' stations breaks 5kg barrier, making gas affordable this winter

Philippe Hoeblich, CEO of PayGas, talks about the launch of Pay As You Gas stations and what it will mean for poorer communities.

Motorists can expect to pay 74 cents more for petrol from Wednesday

Motorists can expect to pay 74 cents more for petrol from Wednesday

Minister of Energy Jeff Radebe announced a fuel price hike citing international crude prices as the main reason for the rise.

4 tax hikes taking effect from March will burden consumers further

4 tax hikes taking effect from March will burden consumers further

The AA says the four tax increases would mean South Africans are expected to pay more on top of what they are already paying.

Popular articles
Paramedics fear for their lives as attacks on EMS crews continue

Paramedics fear for their lives as attacks on EMS crews continue

An ambulance crew was held at gunpoint, assaulted and robbed of their belongings while on a call out in Khayelitsha.

Fikile Mbalula confirms Gupta brother's phone call

Fikile Mbalula confirms Gupta brother's phone call

EWN reporter Theto Mahlakoana unpacks Fikile Mbalula's testimony at the Zondo commission of inquiry into state capture.

This mess that is Eish-kom, is the ANC's doing, says Eusebius

This mess that is Eish-kom, is the ANC's doing, says Eusebius

Eusebius McKaiser and callers discuss Ramaphosa's comment that South Africans will overcome load shedding like they did apartheid.

'Zuma believes that nuclear deal with Russia would've solved SA energy crisis'

'Zuma believes that nuclear deal with Russia would've solved SA energy crisis'

Senior specialist reporter at Tiso Blackstar Karyn Maughan speaks about her interview with former president Jacob Zuma.

Meet Sandile Shabalala, CEO of black-owned and controlled TymeBank

Meet Sandile Shabalala, CEO of black-owned and controlled TymeBank

TymeBank has no branches and no monthly fees. Most transactions are free. Bruce Whitfield interviews its CEO.

Survey reveals SA teachers 'emotionally overwhelmed'

Survey reveals SA teachers 'emotionally overwhelmed'

A report has revealed that many teachers feel overwhelmed and often feel they must step into the role of a 'proxy parent'.

[WATCH] 'We don't accept white people' says BLF registering for May elections

[WATCH] 'We don't accept white people' says BLF registering for May elections

Black First Land First (BLF) leader Andile Mngxitama made its exclusionist policy clear when registering at the IEC on Wednesday.