Image Credit: Gettys
With South African motorists taking the hit on the fuel price hike this April, other goods and services will inevitably follow suit.
The spike is being driven by a combination of what is happening around the world. This commotion is putting pressure on the country with additional levies which have come into effect at the start of April.
The levy increases are expected to place a significant strain on already stretched household budgets for most people.
Also see: How global events impact commodities prices in South Africa
As reported by IOL, Debt Rescue CEO Neil Roets said: “The possibility of the biggest petrol price increase in South Africa’s history could not have come at a worse time for financially strained consumers.”
Currently, many South Africans are battling with the rising cost of living, interests rates, as well as stagnant income growth.
“The prospect of petrol jumping by several rands per litre places enormous additional pressure on household budgets that are already stretched to the limit,” added Roets.
As a result of these rising prices, many South African households are now beginning to buy only critical foods and are actively seeking out the cheapest available options to try to adapt.
Also see: Fuel prices shift: petrol drops, diesel surges
Here’s a look at a few ways in which households can adapt to these increases:
Review budget expenses
According to Business Tech, it helps to review where you’re paying for the same expense twice. Review where your money goes the most and try to budget accordingly. Do not go beyond the intended budget.
A good example is bank fees. If you’re banking with more than one bank, then chances are you’re paying bank fees for similar transactions across different banks. By housing your finances with one bank, you can reduce bank fees. Consider tracking where the money goes, as monitoring those little expenses can go a long way.
Look out for those promotions
Companies will use promotions to try to bring in more customers to their stores. With the price increases, more customers will be looking out for price promotions, especially if these promotions hit the key price points.
Switch to less expensive brands
Consider exploring alternative brands, especially the more affordable ones, to maximise your budget.
Also see: Fuel prices surge: 10 most fuel-efficient SUVs in South Africa
Feature Image: Gettys
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