Johannesburg – Businesses owning vehicles should brace for another fuel increase in December. Although data earlier this month initially pointed to a much higher increase it would appear that a slightly lower increase may now be on the cards.
According to data provided by the Central Energy Fund (CEF) the monthly average points to an increase of 62c a litre for 95 Unleaded petrol and 52c for 93 ULP.
The good news is that if the current trend in recoveries remains on the same trajectory, the increase could fall under 30c.
That being said, fuel accounts for a large number of any business’s expenses and any increases have an instantaneous impact on the bottom line of any business.
This coupled with the recent decision by the South African Reserve Bank’s (SARB) Monetary Policy Committee (MPC) to increase the repo rate by 75 basis points, taking it from 6.25% to 7%. SMEs will feel some pressure and this will affect profitability.
The MPC decided to increase the repurchase rate by 75 basis points to 7%, with effect from the 25th of November 2022. Three members of the Committee preferred the announced increase. Two members preferred a 50 basis point increase. #SARBMPCNOV22 pic.twitter.com/veKZ8VVsQJ
— SA Reserve Bank (@SAReserveBank) November 24, 2022
The upcoming increase in the price of fuel might compel consumers to reconsider their use of fuel and find ways to save as much as possible.
There are many tactics that motorists employ that they believe could help them save money and ensure more kilometres out of a litre of fuel, however, some of these “life hacks” may not be cost-effective and could cause more damage in the long term.
The CEF highlights and busts some long standing myths about how consumers can get the most out of their highly prized fuel.
Myth: Getting more value for your money by filling up in the morning
This myth is based on the assumption that fuel is much denser in the morning when temperatures are often cooler. This stems from the scientific fact that liquids are less dense in warm temperatures.
However, petrol tanks are stored underground at filling stations and are well-insulated which means that they maintain the same temperature throughout the day. As a result, filling up a vehicle when the weather is cooler will not help motorists to save money.
Myth: Shifting your car to neutral at stops and when driving downhill
Cars that are manufactured in this day and age, have a fuel injection system which can detect that the engine is idle. Once the system detects this, the fuel injectors switch off and petrol is not injected into the engine. Shifting your car to neutral in an attempt to save fuel will fast-track the corrosion of the gear’s shift components.
Myth: A manual saves more fuel than an automatic
Modern vehicles are technologically advanced and modern automatic transmissions are as fuel efficient as manual vehicles.
Myth: Cleaning the air filter
Modern vehicles are designed to distribute the accurate fuel and air mixture whether the air filter is cleaned or not. Older vehicles would be easily affected by a dirty air filter; however, modern vehicles have the correct mechanisms to regulate the air-to-fuel mixture. While it does not influence fuel consumption, keep the vehicle’s air filter clean as a dirty filter can limit airflow to the air-conditioner.
Myth: Using cruise control always saves fuel
The cruise control feature is good to use on an open road and flat terrain as it allows the vehicle to maintain a certain speed. However, using cruise control on a road with different terrains may prompt motorists to suddenly accelerate, which uses up more fuel.
Myth: Fuel additives are guaranteed to help you save fuel
Fuel additives are meant to increase a vehicle’s octane rating and help to decrease the corrosion rate. The additives that are used for vehicles include antioxidants, ethers, alcohols, detergents and antiknock agents. Fuel additives are more resourceful for older vehicles in terms of preventing corrosion and helping clean the fuel system. However, these added chemicals do not help motorists to decrease fuel consumption.
Myth: An almost full fuel tank prevents fuel evaporation
Modern-day vehicles have vapour-reduction mechanisms which prevent evaporation. A vehicle’s evaporation control emissions system prevents fuel vapours from being released into the atmosphere.
Myth: Shaking your car when filling up does not get you more fuel
Motorists often shake their cars when filling up at petrol stations. The theory behind this is that shaking the car allows you to fill up the tank as much as possible. Overfilling your car can cause extensive damage to the vehicle. You even risk damaging the car’s evaporation emissions control system.
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