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Budget speech fuel price hike – practical tips to save around R20K a year

Finance Minister, Tito Mboweni, just delivered his 2020 budget speech against the backdrop of a tough economy and an even tougher energy crisis. The biggest pinch will again be felt by motorists who will be hit by a double whammy: a fuel price levy and a Road Accident Fund levy.

According to Susan Steward from Budget Insurance: “With the general fuel levy increasing by 16 cents per litre, cash-strapped motorists will have to make the most of every tank of fuel. Coupled with the 9 cents per litre RAF hike, you can expect to pay around R60 extra per month for a 60 litre tank of petrol if you fill up 4 times a month.”

However, like Mboweni’s Aloe Ferox plant which “survives and thrives when times are tough” – there are ways to make the pinch less painful.

“You can boost the fuel efficiency of your car by as much as 40% by maintaining your car and changing your bad driving habits,” says Steward.  “So, if you fill up 48 times a year at around R1000 per tank, a 40% reduction in fuel consumption could save you over R19 000 a year.”

Budget Insurance provides the following tips for better fuel economy:

“Saving on fuel by keeping your car in shape and changing the way you drive may seem like a bit of a hassle, but if you increase your fuel economy by 40%, a tank that normally gets you 650km could get more than 900 km. This translates to almost a tankful of savings for every two times you fill up,” concludes Steward.

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