Choking On The Petrol Price Increase? Here Are 5 Practical Ways To Lessen The Pinch

'Don't be ashamed to downgrade.'
Getty Images/ iStockphoto

As of Wednesday, motorists will pay 26 cents more per litre of petrol. This comes on the back of an increase of 49 cents in May and another in April of 69 cents to 72 cents per litre at the pumps, with that increase including the addition of 52 cents per litre to the fuel levies.

Head of financial education at Old Mutual John Manyike says it will likely affect many South Africans' pockets.

Manyike has five tips on how you can absorb the petrol price increase and stay afloat financially.

1. Don't be ashamed to downgrade your car

"If a car instalment is choking you, consider trading in your vehicle for a smaller, reliable one with a cheaper monthly repayment. This will also probably lower your insurance and petrol costs," says Manyike.

There is no shame in this, he adds. It's a better option than struggling because you can no longer afford a car in a certain class or, worse, skipping instalments and risking the bank repossessing your car.

Setting up a carpool or taking public transport where possible may also be a more pocket-friendly option.

2. Look for a cheaper place to live

Similarly, Manyike says, if rent in a relatively expensive area has suddenly become a lot to handle, consider moving to an area that's safe but with lower rent and a reasonably close commute.

And if you have the option of moving back home and sharing expenses with family, consider it. Even if you're paying rent and board, the costs will be much lower than those in a suburban townhouse, for example.

3. Create shopping lists

Having a shopping list and sticking to it helps you buy only what you need. "You're in one aisle and you hear an announcement for a discount you hadn't budgeted for, and you rush to that aisle — that's how people find themselves in trouble," Manyike says, cautioning against the fear of missing out (FOMO).

Further, as a result of online shopping and social media, you can easily compare prices beforehand and know exactly where you should shop to get the best deals.

Getty Images

4. Eat out less

Eating out can be expensive, especially with the recent VAT increase. What you pay for dinner for two at a fancy restaurant could equal the cost of groceries for three or more home-cooked dinners.

In addition, cooking at home is proven to be the healthier option, because you can control the ingredients that go into your food and your portion sizes — and even have leftovers!

5. Cut down on non-essentials

If you can do without it, consider cutting it out completely or at least enjoying it only occasionally. Manyike suggests asking, "do I need it?" and "have I budgeted for it?" before making any spending choice.

"This all starts with having a budget," Manyike says, and "discipline, discipline, discipline".

natasaadzic via Getty Images

"It's always important, but never more so in tough economic conditions, to become more realistic about our finances and manage our money effectively," he concludes.

Close

What's Hot