Fuel price increases deepen affordability pressures for motorists, business and commuters, says The National Automobile Dealers’ Association (NADA)
The National Automobile Dealers’ Association (NADA) says October’s fuel price increases will place further pressure on household budgets, affecting motorists, commuters and businesses already managing higher living and borrowing costs.
From 7 October, petrol prices will increase by R3.12 per litre for 93 octane and R3.33 for 95 octane. Wholesale diesel prices will rise by approximately R2.84 and R3.24 per litre for the respective sulphur grades.
For a motorist purchasing 50 litres of petrol, the adjustment adds between R156 and R166.50 to the cost of each fill.
“For many South Africans, transport is essential to earning a living, taking children to school and accessing essential services,” says Thembinkosi, Vice Chairperson of NADA. “The journey to work does not get shorter when fuel becomes more expensive. Households have to find that additional money within budgets that are already stretched.”
The impact extends to people who do not own vehicles. Many South Africans depend on minibus taxis for their daily journeys, particularly where reliable public transport alternatives are limited.
“Higher fuel costs put pressure on taxi operators. If these translate into higher fares, commuters who can least afford another increase will have less money for food, electricity and other essentials,” Pantsi says. “Many have little flexibility to change how or where they travel.”
Higher diesel prices also increase operating costs for businesses that transport goods, make deliveries or provide services. Where businesses cannot absorb these costs, they may feed through into the prices consumers pay.
The fuel adjustment comes alongside existing inflation and borrowing pressures. Annual headline consumer inflation was 4.4% in August, while transport inflation was substantially higher at 8.8%. These readings predate the October fuel increase.
The Reserve Bank’s September decision to increase the policy rate by 25 basis points to 7.25%, with prime moving to 10.75%, has added to financing costs.
“Consumers are not dealing with these pressures in isolation,” Pantsi adds. “Vehicle repayments, fuel, insurance, maintenance, food and electricity all compete for the same disposable income. It is their combined effect that determines what a household can afford.”
While September’s stronger new-vehicle sales provided an encouraging foundation for the final quarter, NADA says sustaining that momentum will require continued attention to affordability. The late-September interest-rate increase and October fuel adjustment cannot yet be fully reflected in those sales figures.
“A manageable monthly instalment does not necessarily mean that a vehicle is affordable,” Pantsi says. “Buyers should consider what it will cost to finance, fuel, insure, service and maintain, based on their actual travel needs.”
NADA encourages motorists to maintain recommended tyre pressures, drive smoothly where possible and keep up with essential servicing and maintenance.
“Dealers have an important role in helping customers match vehicles and finance options to their circumstances,” Pantsi concludes. “The aim is to support choices that remain affordable throughout ownership.”
NADA is a proud constituent association of the Retail Motor Industry Organisation (RMI).
*Information provided by the publicist.
Free publications are posted at editorial discretion and cannot be revised, updated, amended or altered after going live.
To request Fully featured articles, post-publication edits/ updates, schedule guaranteed publishing timing, commercial link inclusions, sponsored feature placement:
these services are available through our paid content packages:
https://www.iloveza.com/pages/advertise-with-us
or email howzit@iloveza.com
