Too expensive to own a car in 2014
Between e-tolls and the petrol price, people will have to budget for a bad year.
2014 dawned bright and new and with a petrol price increase of 39c/litre.
The new petrol price means that for people with cars similar to a 2006 1.3 Ford Ka, one can expect to pay around R450 to fill the tank. For those with more expensive tastes and bigger cars, a 2006 1.8 Mercedes C180 for example, filling the tank will probably cost about R900. The price increase also means that those travelling by taxi will need to pay more. Vincent, who works at Life Flora Clinic, says that some taxis travelling from town to Flora already have upped the price from R9 to R12 and that most of them will have done so by Monday.
One also has to consider the e-tolls. Everyone without an E-tag, but still intending to pay, now after the seven-day grace period, is labelled an alternate user (AU). This means they are liable for AU tariffs where they do not qualify for discounts. So John travelling on the N1 from 14 Avenue to Olifantsfontein via Malibongwe Drive pay R40,91 per day since he doesn’t qualify for the R19,75 discount. That is R209,55 a week and R838,20 a month.
So if the owner of the Ford Ka fills up once a week (R1 800) and travels from 14 Avenue to Olifantsfontein every weekday (R838,20), that is an extra R2638,20 out of their pocket each month. That is R31 658,40 spent annually on just the car. And that’s not including insurance and repairs. The Merc filling up similarly and travelling the same distance would pay R4 438,20 a month and R53 258,20 annually.
It’s also a rule of thumb that when the petrol price increases, soon enough the price of goods increases too. It is not a far stretch to imagine that e-tolls may push prices up as well. In an interview on 2 January, economist Dawie Roodt told the SABC that, “what people don’t realise is that this is an additional cost to business as well, and business will try and recoup the loss. They will pass it on to us, the consumer.”
All things taken into consideration, the cost of living has increased a dramatically, but most salaries haven’t. A lot of people most likely will incur debt this year. All in all it doesn’t look good.
