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Manage tariff increases effectively

Manage tariff increases effectively

Date: 2019-05-10

South African consumers are feeling the financial pinch with the recent fuel increase; which in addition to their daily household expenses will cause a strain on their pockets.

"South Africans have been burdened with exorbitant tariff increases over the past quarter. As the year progresses; consumers may be faced with a few more increases in the upcoming months if global oil prices continue to rise from the current levels," says Ester Ochse, Product Specialist, FNB Wealth and Investments. "Consumers are encouraged to include tariff increases like the fuel and electricity tariffs into their monthly budgets. This allocation will help ease the financial strain and ensure that they are well-secured with their finances."

While economic growth is anticipated in the longer-term; consumers are advised to manage their expenses by reducing non-essential spending and saving more. Ochse explains, "Consumers should understand how the tariff increases affect their pockets."

"The effects on the petrol and diesel increase can be felt far beyond the consumer. "The increase has a knock-on effect for both business and consumers which indirectly affects household expenses, transport, etc."

"Tariff increases, whether low or high, can cause a strain. This should be part of your working budget, just to ensure that you mitigate the risk of not being able to pay for your household expenses," concludes Ochse.