How fuel hikes are hitting Limpopo households | Review

POLOKWANE – Fuel prices are driving up the cost of living in Limpopo, and it doesn’t stop at the petrol station.

According to Statistics South Africa, the fuel price spike pushed national inflation to 4% in April. For Limpopo residents, the effects are showing up in bus fares, household budgets, and even potential interest rate hikes.

Also read: Fuel hikes drive up taxi and bus fares in Limpopo

What happened in April

In April alone:

• Inland 93-octane petrol increased by R3.06 per litre
• Diesel went up by R7.52 per litre

For the average driver, a 45-litre tank now costs almost R1 050, which is at least R138 more every time you fill up.

The fuel index rose by 18.2% between March and April, the steepest monthly increase since 2008.

The ripple effect

Within weeks, the fuel shock hit public transport.

On May 1, bus fares on Great North Transport (GNT) routes from Polokwane to Seshego and surrounding areas increased from R12 to R15.

For someone travelling from Seshego to Bendor and back each day, that is an extra R6 daily, R30 a week, roughly R120 a month. Money that has to come from somewhere else.

Also read: R3 bus fare hike pushes Limpopo commuters to the brink

What could come next: Interest rates

The fuel shock has also raised concerns about interest rates.

Investec chief economist Annabel Bishop told IOL that the April inflation figure increases the chance of an interest rate hike from the South African Reserve Bank. She predicts an increase of 0.25 percentage points.

For Limpopo residents with car loans, home loans, or credit card debt, even a small interest rate hike means higher monthly repayments on top of already higher transport costs.

June forecast

The end of May will bring the official fuel price announcement for June, and the outlook is not good for petrol users.

According to current projections from the Central Energy Fund, the price of petrol could rise by around R1.60 per litre next month. One reason is that a portion of the government’s temporary fuel levy relief will expire in June.

If the forecast holds, petrol could sit at R27.85 per litre.

Diesel drivers may catch a break. The same projections suggest diesel prices could fall by more than R2 per litre.

Also read: How a Polokwane transport business adapts to new fuel prices

The bottom line for Limpopo residents

Household budgets will continue to feel the pinch. From the fuel tank to the taxi rank to monthly bond repayments, the fuel price spike is touching every part of daily life.

The official June fuel figures will be released by the Department of Mineral and Petroleum Resources in the last week of May.