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Petrol prices are up – but your consumption doesn’t have to be

Petrol prices have risen to a record high of more than R17/litre. The Automobile Association (AA) describes this price hike as ‘catastrophic’ for consumers, with a knock-on effect on transport and food prices.

Both grades of petrol, 93 and 95, have increased by 99 cents and 100 cents a litre (c/*) respectively. This brings the overall retail price of 95 ULP for inland motorists to R17.08 c/* and R16.49 c/* at the coast. In the past month the cost of diesel has increased significantly to R16.20 per litre, up 56 cents a litre from last month. These huge increases will effect not only consumers, but businesses as well. 

Petrol price increase

For SME businesses in particular, the fuel price increase will impact the likes of last mile delivery costs – a cost that consumers will also have to bear.  Last mile delivery, the current buzzword in the logistics industry, is defined as the movement of goods from a transportation hub to the final delivery destination, typically the consumer’s home. Estimates reveal this final leg of delivery can make up 28% of a product’s total transportation cost – fuel is just one factor driving this cost, along with warehousing and technology expenses. 

How can SMEs reduce their last mile delivery cost in light of the petrol increase?

Locating warehousing in urban areas is one way to reduce this expense, because they are closer to the end-user. Our conveniently located Stor-Age stores are located in prime residential hubs, so that customers, which includes businesses of all sizes, students and private individuals, do not have to travel far every time they wish to access their valuables.

These convenient locations – such as Bryanston, Randburg and Edenvale in Johannesburg, and Sea Point, Claremont and Gardens in Cape Town – offer easy accessibility and proximity to one’s home or office. In addition customers also save on fuel costs thanks to Stor-Age’s free van service (T&Cs apply).

Another way to reduce the effect of the petrol price increase and decrease last mile costs is to choose a vehicle fit for purpose. The correct vehicle for each job can reduce costs and time spent on the road, assisting last mile deliveries. For example, if only a few smaller items need to be delivered, it will be far more fuel efficient to use a motorbike or smaller car than a larger van. 

Regularly checking that your tyres are pumped to the correct pressure, and not idling unnecessarily is another way to cut down on your fuel bill.

The fuel price increase has shocked the country, but the cost on last mile deliveries does not need to be as drastically influenced. If you want to cut down these costs by taking advantage of our many store locations nationwide, simply call us on 0861 18 18 18.

Posted by Stor-Age Self Storage - 13 November 2018 | News And Events|Tips And Hints