News24 | FRIDAY BRIEFING | Running on fumes

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R30 a litre: The number that breaks the household budget

When news broke that motorists would be paying around R30 a litre for petrol – the first time the price has crossed that threshold – and that diesel would cost even more, listeners called radio stations to say they would think twice before getting behind the wheel.

Of course, not everyone in South Africa has the luxury of owning a car. For many who live far from work, due to apartheid spatial planning, public transport is the only option.

Rising fuel costs have a ripple effect across the board. Freight costs go up, and with that, the cost of food. Consumers will also pay more for taxi fares.

In his submission to this week’s Friday Briefing, Professor Joseph Sekhampu, chief director of the NWU Business School, writes that the household bill does not end with petrol, food, transport and electricity. Many still carry the burden of services the state fails to provide, such as maintaining inverters and paying for private security. Read the full submission here.

In his contribution, Jannie Rossouw, an honorary professor at the Wits Business School and economist at Altitude Wealth, reflects on what government could do domestically, even though the crisis is largely out of South Africans’ control. Read his contribution here.

We end with an analysis from in-depth writer Muhammad Hussain, who speaks to various stakeholders on why another fuel levy cut is possible – but why it might not be the best decision in the long run. Read that analysis here.