Can you afford your dream car if petrol prices hit R30-R40/litre this year?

Loading player...
With global inflation and the war in Ukraine stoking higher oil prices, South Africans are facing record fuel prices. Though it’s hard to know where it will end, some analysts say that a petrol price of R40 per litre is not inconceivable in an extreme scenario. Given that fuel is one of the biggest running expenses for your motor vehicle, drivers should consider fuel efficiency and costs when deciding which car to buy or even whether to retain their existing vehicle, says Ernest North, co-founder of the fully digital Naked Insurance platform.

“With the South African Reserve Bank expected to raise interest rates several times during the year and fuel prices on the rise, people should be thinking carefully about how this will affect the affordability of the car they’d like to buy,” says North. “As a simple example, if you drive a car with a fuel efficiency of around 20 kilometres to a litre and drive an average of 1000 kilometres per month, your petrol cost will rise from R2,160 per month to R2,500 if the petrol price hits R25. We encourage car owners to consider their unique scenario of car ownership cost, based on their actual car financing and monthly travel details.”
21 Mar 2022 5AM English South Africa Business News · Investing

Other recent episodes

Paymenow data shows SA workers lose 40% of purchasing power.

A new Paymenow analysis shows South African workers have lost more than 40% of their purchasing power over the past decade—even as headline inflation stayed within target. Rene Richter, Reward & Benefits Lead Advisor at Paymenow, joins Kaya Biz to unpack why wages aren’t keeping up, how transport and utilities…
21 May 2PM 10 min

Oceana H1 Results: Lucky Star Shines as Fishmeal Stumbles

Oceana Group has delivered a resilient set of interim results despite a 6% drop in revenue. Lucky Star and Wild Caught Seafood carried the half‑year, while Fishmeal & Fish Oil struggled under weak catch volumes and global pricing pressure. CFO Zaf Mahomed joins Kaya Biz to break down margins, cash…
21 May 2PM 18 min

Inside Investec’s Strong 2026 SA Performance

Investec SA has delivered a robust full‑year performance in a tough macro environment. CEO Cumesh Moodliar joins Kaya Biz to unpack the 5.2% rise in SA operating profit, strong momentum in specialist banking, wealth inflows, digital transformation, and what the bank expects from the South African economy heading into 2027.
21 May 2PM 13 min

Stats SA Explains April’s Sharp Inflation Rise to 4%

South Africa’s inflation rate surged to 4.0% in April, driven by fuel, transport, and housing pressures. Stats SA’s Patrick Kelly unpacks the numbers, the 1.1% month‑on‑month spike, and what’s behind the dramatic swing in transport inflation. We explore regional differences, goods vs. services inflation, and what this means for households…
20 May 4PM 11 min

4% Inflation and the SARB’s Next Move

With inflation back at 4% and oil‑driven risks rising, the SARB faces a critical decision next week. Economist Sifiso Skenjana unpacks the April CPI print, the credibility of the new 3% target, and whether a rate hike is now on the table. We discuss real interest rates, global financial conditions,…
20 May 4PM 15 min