More pain at the petrol pumps expected for June

NEWCASTLE – More fuel hikes are expected to add to consumers’ woes this month.

Various mitigating factors are currently influencing the price of our “Go Juice,” that may lead to another fuel increase at the mid-year mark.

Also see: Another hike on the way

With the price of Brent crude oil trading well over the dreaded $50 mark ($51.37 as of June 8), and the Rand’s dismal performance against the US Dollar, South African consumers again find themselves counting their pennies.

The increase will mean motorists will pay approximately R100 more per month for fuel, if they have a 60 litre tank and use one tank per week.

This may not seem like much right now, but that’s R1 200 extra per annum. This will surely rise even more if the fuel prices tethered with the R/$ battle, maintains its current trend.

Wikus Olivier, a debt management expert at DebtSafe, warned consumers to review their budgets carefully, so that increased expenses, such as the fuel price increase, on the one hand, is balanced within your monthly budget, on the other hand.

“You should either increase your income, or reduce your expenses. Practical steps to quickly open some cash flow include reviewing your insurance policies. Your car, for example, is worth less than last year this time, so your insurance premium
should also be less. Have your broker review the premium, and it could release an extra R100 in your monthly budget,” explained Mr Olivier.

Furthermore, he shared another pearl of budgeting wisdom.

“Another clever way to manage your money is to move your credit card debt into your current account’s overdraft facility. Interest and fees are less on an overdraft, and this easy move could potentially save you another R100 per month.”

Mr Olivier said the most important thing to know is what your monthly expenses are.

“If you know exactly what you spend, you’ll be able to cut out unnecessary spending, which will help you absorb the latest fuel price hike,” he concluded.