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
Col’Cacchio serves first pizza topped with cannabis oil in South Africa

Col’Cacchio serves first pizza topped with cannabis oil in South Africa

The pizzas will be available at selected restaurants in the franchise from Tuesday.

Alcohol the biggest cause of unruly passenger behaviour, says aviation expert

Alcohol the biggest cause of unruly passenger behaviour, says aviation expert

Plane Talking MD Linden Birns breaks down some of the costs incurred when a passenger causes the plane to divert.

Honeymoon scuppered: Local man describes being scammed R60K by Destiny Holidays

Honeymoon scuppered: Local man describes being scammed R60K by Destiny Holidays

CapeTalk listener Paul had planned his honeymoon, and he and 32 others, lost over R2m to a seeming fly-by-night travel agency.

'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
TymeBank CEO Sandile Shabalala quits

TymeBank CEO Sandile Shabalala quits

Shabalala says he wants to spend more time with his family. Bruce Whitfield interviews portfolio manager Kokkie Kooyman (Denker).

Average salary in SA is R6400 per month, but 70% of workers earn less

Average salary in SA is R6400 per month, but 70% of workers earn less

About 29% of workers earn less than the R3500 national minimum wage, says Anish Shivdasani, CEO at Giraffe.

Can South Africa and Nigeria kiss and make up? Because there’s money to be made

Can South Africa and Nigeria kiss and make up? Because there’s money to be made

The relationship is complicated and strained. Dianna Games reports back from the SA-Nigeria Investment Conference in Sandton.

'Elephant in the room is labour law and the labour movement'

'Elephant in the room is labour law and the labour movement'

The Money Show's Bruce Whitfield interviews economists Andrew Levy (Andrew Levy Employment) and Dr Azar Jammine (Econometrix).

Investec gives staff unlimited leave days and freedom to wear what they want

Investec gives staff unlimited leave days and freedom to wear what they want

The bank rewards innovation with substantial bonuses and pays according to output not hours at work, says Lesley-Anne Gatter.

We've technologist on record saying she'll not treat patients - Discovery Health

We've technologist on record saying she'll not treat patients - Discovery Health

CEO Dr Broomberg has rubbished reports that a KwaZulu-Natal patient died after the company stopped payments.

R400m is absolute nonsense, insists CR17 campaign member

R400m is absolute nonsense, insists CR17 campaign member

Ramaphosa's former campaign member Dr James Motlatsi says he is the one who asked Gavin Watson for a donation, not the president.

[WATCH] Sho Madjozi first female South African to win BET award

[WATCH] Sho Madjozi first female South African to win BET award

The rapper, singer and songwriting superstar walked away with the best new international act on Sunday evening in Los Angeles.

Gauteng waitress gets R18,000 tip for 'amazing service'

Gauteng waitress gets R18,000 tip for 'amazing service'

A waitress at The Beerhouse in Fourways who received the generous donation wants to finish her matric and become a paramedic.