Consumers to seek alternatives as petrol soars
|Published
File photo File photo
The price of petrol increases by 32c tomorrow, marking the fifth hike in eight months, and bringing the price of a litre of unleaded fuel to a high of R13.18 for this year.
All is not lost, however, says economist Clive Coetzee, who predicts motorists will look to alternative fuel sources in the long term to combat their shrinking bank balances.
“We must not lose sight of the potential positives. The price of petrol is only going to go up in the future, and it will reach a point where we will have to adopt alternative energies,” said Coetzee.
He said vehicles powered by electric batteries, biofuel, and hydrogen would become more attractive as petrol prices rose, and as more people invested in such technology, it would become cheaper.
Until then, Coetzee said, an increase in the petrol price would also change motorists’ driving patterns, for the better.
“The fuel hike can change behaviour, and slowly but surely people will stop wasting fuel through unnecessary driving and speeding.”
But, if alternative fuels and less time on the road were not viable options, Coetzee said, consumers had two choices: “To cut down on luxuries or other expenses, or use credit.”
Coetzee said the latter was the most popular option among South Africans who did not want to lower their standard of living.
“At some point credit has to be paid back, though, and the effect will be felt.”
With most workers’ salary reviews only taking place once a year, the increase in the fuel price and spike in credit spending negatively affected the country’s already poor savings culture, he said.
The 32c petrol price increase would be accompanied by a 33c hike in the diesel price and a 29c increase in the cost of paraffin, and propane gas would increase by 22c a litre. - The Mercury