The recent announcement that petrol prices would hit record highs has left many South Africans worried about how they will cope with the increased costs. As colleagues discussed working from home to save money, the issue of fuel prices has become a pressing concern for many. With the rand already stretched, it is unclear how much more people can tighten their belts. The increase in fuel prices is expected to have a ripple effect, leading to higher food prices and increased costs for commuters who rely on buses, taxis, and staff transport.
In an effort to mitigate the impact of high fuel prices, people are exploring alternative ways to get around. In some countries, such as China, walking to work is a common practice, while in others, like Warsaw, Poland, many people ride bikes or scooters to work or school. However, in South Africa, safety concerns make it difficult for people to walk or leave bikes and scooters unattended. Instead, lift clubs have become increasingly popular, with many people using social media to find others to share rides with. When using lift clubs, it is essential to verify the details of the person you will be traveling with.
According to Santam head of personal underwriting Marius Kemp, there are practical ways to minimize transportation costs without disrupting daily routines. Kemp suggests that driving slower, avoiding harsh braking and acceleration, and keeping tyres correctly inflated can help save fuel. The International Energy Agency recommends reducing speed by at least 10km/h on highways to reduce fuel consumption. By adopting these habits, motorists can make a significant impact on their fuel costs.
Errand stacking and working from home are also effective ways to reduce fuel consumption. By stacking errands, people can reduce the number of trips they make, while working from home can significantly reduce the need for daily commutes. Kemp suggests that if possible, working from home for at least part of the week can help stretch out petrol station visits. This can also help reduce the strain on already tight budgets.
Carpooling is another option for motorists who are unable to work from home or reduce their travel. However, it is crucial to check the terms and conditions of car insurance policies before entering into a carpool arrangement. If not done correctly, it can impact insurance cover and potentially lead to a cover shortfall or denied claim. There are different types of carpooling, including specific driver carpool, where passengers pay a weekly or monthly rate towards costs like petrol, parking, and maintenance.
Employer carpooling is another option, where employers offer staff the use of company vehicles to encourage carpooling. In this case, employees pay a fare to cover petrol, insurance, and maintenance costs. When carpooling, it is essential to inform the insurer, as this can affect insurance claim excesses and payouts. If the designated driver of a car is not the regular driver listed in the insurance policy documents, it can negatively impact claims.
As fuel prices continue to rise, Kemp recommends reviewing insurance policies instead of reducing cover. Bundling home and car insurance together under one policy can save up to 25% on premiums. Additionally, checking if insurers offer value-added services like emergency breakdown assistance or locksmith services can provide further savings. If struggling to afford insurance premiums, adjusting cover can also be an option.
Key points
- Driving slower and avoiding harsh braking and acceleration can help save fuel.
- Errand stacking and working from home can significantly reduce fuel consumption.
- Carpooling and lift clubs can help offset some running costs, but it is essential to check insurance policies and verify details with fellow travelers.
