SA's petrol price horror
Fin24

SA's petrol price horror

2013-09-17 09:43

Port Elizabeth - Everyone knows the petrol price is high, very high. And most people know that the weak rand and high crude oil prices are to blame. But we do not always realise the full impact of the increase in fuel prices over the last few years because we tend to focus on the price at the pump for only a few minutes when prices change.

We’d rather try to forget that petrol used to cost less than R2.00 per litre up until the beginning of 1998.

Yes, that is right: Within 15 years the price of fuel has increased by more than 560%. That equals to an increase of nearly 14% year after year. Even this average increase of 14% per year does not sound so bad, until we realise that our salaries did not increase that much every year.

Effectively, we are spending a larger proportion of our salary feeding the pile of steel and chrome in the garage.

If we use the same figures the friendly people at South African Revenue Service have used for years as a guideline to calculate tax on travel allowances – 30 000km per annum  – and an average fuel consumption of around 10 litres per 100km, every motorist’s fuel bill has increased to about R 3 375 per month. 

This compares to R1 015 per month ten years ago when petrol was R4.06 per litre and R1 980 three years ago when the price was R7.92 per litre. Within 3 years our monthly expenditure on fuel has nearly doubled. Once again, our salaries did not.

Unfortunately, petrol is a necessity. And there are no substitutes for the stuff. We still need around 200 to 250 litres every month to get to work and back and to fetch the kids from school.

The result of higher petrol prices is simply that everybody had to reduce spending on other things to pay the extra R1 500 per month for fuel.

Latest results and commentary by almost all SA retail groups mention the fuel price as one of the main reasons for lower growth in sales. Gareth Ackerman, chairperson of Pick n Pay, recently referred to “the devastating effect of the increase in the fuel price on consumers’ disposable income”.

The Reserve Bank has identified higher fuel prices as the biggest source of inflation. This deals the SA consumer a second blow. Not only did the increase in the cost of petrol cut deeply into our disposable income, but the little we have left buys much less because of higher inflation.

The overall numbers are huge. South Africans use more than 20 billion litres of petrol and diesel every year. If we assume that half of this is used by private vehicle owners, then households in SA are currently spending nearly R60bn more on fuel every year than 3 years ago.

In total, SA citizens have some R5bn per month less to spend on food, clothing and entertainment.

Unfortunately, things will not change while the oil price remains high and the rand stays weak. Let’s hope a cold winter in the northern hemisphere won’t push oil prices even higher.

- Fin24

*After chasing money on the JSE for 15 years, Adriaan Kruger is now living a relaxed lifestyle in Wilderness and lectures economics part-time at NMMU.

Comments
  • George Harris - 2013-09-17 09:55

    Other emerging markets have managed to make a plan by switching a portion of there fuel to bio fuels. Why can't we do the same?

      Graham du Plessis - 2013-09-17 09:59

      I wish our price was like yours! Here in the UK it is R24 a litre.. Seeing that both the UK and SA import a lot of fuel priced in dollars, I'm not sure how SA's is cheaper?

      Pieter Thefuture - 2013-09-17 10:34

      @Graham - taxes and extra costs the UK government adds to the fuel price. I stand to be corrected, but i have heard that the price of petrol if taxes and other fees were removed would be around R5 per litre.

      Dean Button - 2013-09-17 10:37

      @Graham du Plessis Yes it's £1.33-1.44 depending on where you are (never go near the services on the motorways!) but then we have the alternative of using trains (not so cheap but fast) or buses (cheap but not so fast). Also, even after accounting for MoT and tax, cars here are ridiculously cheap to buy second hand and also maintain. This is all excluding PPP, where ~£1.40 is worth about a 1.5l Coke to a Briton than R13 is a 2l Coke to a South African, so petrol in SA is still more expensive when using a baseline. So your statement is especially blithe!

      Thando Gqabaza - 2013-09-17 10:59

      What about the RAF's involvement in this ? I've personally seen how that organization wastes money ( like sending everyone overseas for IT training when it could be done here )

      Johann Eloff - 2013-09-17 11:09

      @George - We don't have to do that we have Sasol which does not have to be linked to the Oil price! They have been riding the oil band wagon for the last 15 years and making massive profits...a litre of Sasol to produce is around R3 p/l @Dean it is not really more expensive here than in the UK, our petrol is pretty cheap when compared to the rest of the world...the problem we face is prices of petrol relative to your income. If your average income is £2000 a month I am more than happy to pay £1.5 p/l but if your average income is R2500 then R13 p/l takes a much bigger chunk out of your income to be able to earn that income...

      DarkVoid - 2013-09-17 11:14

      The other thing that I once asked was why we only keep a third of fuel from the Coal-to-fuel process by Sasol, the rest is shipped of to other countries at less that what it's sold for here. Completely independent of the oil, only based on the costs of the process and the coal, yet that is not taken into account. Why?

      Janet Pretorius - 2013-09-17 14:55

      @Graham - what are the average salaries in your 1st world UK like?

      Nonpop Ular Newsreel - 2013-09-17 15:07

      George, petroleum, or bio-feuls, it simply doesn't matter. The objective is to destroy affordable energy. The matter is simple; given affordable energy; any person has access to affordable food, raw materials and, well, energy in order to be creative and progressive. Have a look at technologies accessible to us all... Any technology to keep mankind from being physically mobile (except within the range of wi-fi or cell service) has become so exorbitantly expensive that the common man will be forced to see the world through screens. Nothing much has changed since the 60's... We still have the same concepts of physical travel; only the energy source (hydrocarbons) is made too expensive to be practical. Bio-feuls are just another pipe-dream that, if implemented will take furtile land away from producing food; into producing more hydro-carbons (all this while we still have piles of unmined hydrocarbons left). The answer is not in what we know; but what we know is a lie. Room temperature superconductors have been in existence since the 1970's... Has anyone ever offered you a cell phone battery that would be good for the next 200 years without a charge? It is not the green that we are fed; but the green that is hidden that will save us...

      Jonathan William King - 2013-09-17 16:09

      Because we have idiots in charge of a 3rd world country.

      PJthesecond Eldest - 2013-09-17 16:30

      I am paying R13-00 per liter for 87 octane here on Vancouver Island Canada but just across the border in the USA it is just below R10-00 per liter.

      Nico de Jongh - 2013-09-17 21:55

      The big boys merely opens their fat trap and the profits are raised. Capitalism has this loophole for the rich to get richer.

      Danie Theron - 2013-09-18 06:40

      Nico de Jongh, The difference between capitalism and communism is, with capitalism man exploits man, with communism it is the other way around. Exploitation is a human condition - it is not an economic condition.

      NickvanGraan - 2013-09-18 08:14

      Now you need to work out how much additional tax revenue the government is raking in off the escalating fuel price.

      Stinkhout - 2013-09-18 12:30

      The beginning of 1998 the cost was less than R2.00/litre in SA and £0.80 in the UK. You got about R8 for 1 Pound then. The UK price doubled since then and SA price skyrocketed. Average salary comparisons don’t count but if you look at stats like average house price in UK it is about £190,000 but you can buy a nice car for 10% of that (£19,000). How does that compare to SA standards?

      Robert Burroughs - 2013-09-18 22:36

      Graham. My argument has always been that people, possibly like you, convert pounds to rands to make a statement like you just did. Have you ever sat down and done a study of the income in pounds and converted it to rands? Some years back the then minister of finance, Trevor Manuel, spoke about the same thing. Petrol in USA $0.90 PER GALLON. Minimum rate $14 per hour. Rate of exchange $1= R10. Please, do the math then come back and tell me another story.

  • paul.john.790256q - 2013-09-17 09:59

    Blame the monopoly run by the local oil cartel (unified under the banner of SAPIA) that force consumers to purchase product from SASOL and PetroSA at the same price as imported product. When we are tired of striking and complaining about what we think is wrong in South Africa and take On the real thieves, we might see some results in our lives

      Fanie Mthethwa - 2013-09-17 18:39

      To unpack this mystery, you need to understand the hazards of BFP (Basic Fuel Price) which is the deemed landed price of finished fuels product at the coast. This BFP has been consistently higher than the actual landed spot price of the finished product but BFP is kept higher to protect old inefficient refineries in operation. As is, it's cheaper to import petrol and diesel than to import crude oil and refine it locally but we are so in love with out refinery assets ....Anything else builds on the BFP baseline which is still as harmful as the previous IPP (Import parity price).

      Andre Maritz - 2013-09-18 10:26

      But, isn't th ereal thieves the OPEC countries who are holding the world to ransom? Surely the oil sheiks with their 24 Carat gold toilets and sterling silver cars are way more to blame than any SA government?

  • Love Ness - 2013-09-17 10:06

    And with a straight face, the finance minister just adds a new levy on fuel just to cover the budget deficit. So this issue of high oil price plus weak rand increase our misery BUT what about these arbitrary levies being put on fuel with nothing to do vehicles or roads.Fuel is a piggy bank for government.

  • robespear - 2013-09-17 10:11

    Blame the #ANC and its disastrous economic and labour policies for pushing the rand so low. There belief that a weak rand makes us all wealther is coming home to roost. #ANCEPICFAIL

      Cuan Lohrentz - 2013-09-17 14:30

      lol..and exactly how is it their fault?

      Thermophage - 2013-09-17 15:05

      No Erich I am not. Far from it I think. Do you honestly believer everything you hear in the media without knowing more about the topic yourself? I'm a geologist (and no I don't advocate wanton descruction of things, but I realise we need mines/etc, unfortunate that may be), and there are definitely ways in which this can be carried out safely. So please don't just jump on the anit fracking bandwagon when you're likely unaware of the fuller detail in the story.

      Ian Calder - 2013-09-17 15:17

      Thermophage - No bud, you are clearly an idiot. No one mentioned fracking in any shape or form, and you are bringing it up? They are talking about the downturn of the Rand. Do try keep up.

      Thermophage - 2013-09-17 15:36

      Lol Leeto, wtf was I saying? Too many posts to reply to that I forgot which article I was even replying to. So maybe I am dumb at times ;) Anyway. I still don't see how this is the ANC's fault...Not that I support them AT ALL. But simply making a silly statement like that is typical RSA pessimism without any thought into it.

      robespear - 2013-09-17 16:38

      @thermophage...hope your a better geologist than economist. This article is spot on: http://www.bdlive.co.za/opinion/editorials/2013/09/17/editorial-how-to-make-south-africa-work-again

      Christiaan Nel - 2013-09-17 17:15

      thumbs-up for the "better geologist than economist" comment :P

      TaniaSS - 2013-09-17 23:04

      Geez guys, the man apologises gracefully, and you still give him a thumbs down?

      Danie Theron - 2013-09-18 06:24

      robespear, Good article - it does however miss one critical verity.., The article states: "...The answer is that we don’t have any industry because we don’t have any customers..." The inconvenient reality is: we don’t have any industry because we don’t have any BRAINS. The said article responds to Ben Turok's question: "...We have all the minerals, why don’t we have any industry?.." Turok is a natural born idiot, a classical sh^t-for-brains-socialist, a product of the UK's Labour Party, that not only hates whites (ref link below), it single-handedly destroyed the UK's economy and relegated it to its current minnow status (from where it was once an undisputed global leader). Turok's ilk operates in the realm of a cloud-cuckoo-land where money grows on trees and peasants are in power - the run-away fuel price is but one trigger for a certain Zimbabwe style hyperinflation led destruction of SA's economy; Moeletsi Mbeki predicted by 2020. The National Party understood that SA's economy can only survive with a strong currency, high labour efficiency and low energy costs. The ANC is too dense to grasp this verity. http://www.theoccidentalobserver.net/2011/05/the-labour-party-war-against-white-britain/

      ELana Bronkhorst - 2013-09-19 03:24

      To Thermophage: The ANC is to blame for the weakness in the rand based on whats happend inside the country. 1992 when we went abroad the rand was R2.86 to $1. Since ANC came to power: a) Massive increase in Crime b) Massive flight by whites = brian drain of the country c) Multiple stikes + wanton destruction of business+propert + some never ever recovering = loss in jobs d) SA became known as one of worst places for crime. e) 2013 Durban stated as murder capital of the world! f) Flight of farmers due to white genocide = loss of local food production = lower exports too. g) Microsoft in SA resently pulled outto set up in Nigeria = red flag to world economist not to mention loss of jobs. h) Racial songs sung by ANC gov + top members 'Kill the Whites" i) 2013 gag orders by ANC ZUMA on media + arrest/imprisonment for whilsteblowers exposing gov corruption = dictatorship in progress! j) Abuse of countries revenues now evident by world economist= scares off potential investors to SA k) Corrupt + pathetic police system = brake down of law 'n order l) BBE scares foreign investors + reverse apartheid. m) New laws passed by ANC literally stealing property of business/ entrepinure's life work by forcing businesses with annual turnover of R10M + to give 50% of ownership to black employees, irrespective how few employees- even if just 2 or 3. n) Companies wth 50+more employee to give 50% ownership to black workers. o) Eskom' instability= loss production = neg effect on profits!

  • David Robert Lewis - 2013-09-17 10:21

    We need to move away from a hydrocarbon economy to an economy based upon renewable energy. Our government should be supporting initiatives to get South Africa's transport to switch to electric and hybrid vehicles.

      Stefan Van Der Spuy - 2013-09-17 11:31

      Electric and hybrid vehicles have batteries that need to be CHARGED. Oh no...that means Eskom comes into the picture. So either way you're buggered, pay for fuel, pay for electricity.

      TaniaSS - 2013-09-17 23:11

      We need to get our Railways back in business. It was the growth spurt in so many Countries. The carriages should be owned by individuals or consortiums, be articulated to function on both road and rail, and it would create an opportunity for even the smallest farmer to get his produce to market. Innovate. Our current system screws everybody.

      Neil White - 2013-09-18 13:35

      eskom already cant keep up just powering buildings, lamp posts etc etc. how will they handle when everyone plugs in there cars every evening

  • Tmash Brown - 2013-09-17 10:26

    the disturbing part about it all is that we have to bow and take it as it comes.but are we really toothless and defenseless? the gov cant do anything about it? I just dont believe it. there is lot we dont know.

      hein.huyser - 2013-09-19 10:24

      Had to give you a td. Every policy that this racist regime installs have been a failure in respect to secure incomes for it's citizens and to protect the strength of our currency. The longer we blame everyone else but our own regime the longer it will take to replace these deployed political appointees with people who can actually do the work they are being paid for. Your choice - choose right or look forward to become Simbabwe (Zimbabwe's most Southern province)

  • Michael Tetley - 2013-09-17 10:45

    Pricing the locally sourced base stock (Sasol & PetroSA) at parity with imported, REFINED end product is the first step in the overall problem. The second is that more than half the retail pump price consists of GOVERNMENT taxes, levies etc. There is no incentive for government to find alternatives as they make too much revenue, fuel is one of Government's main cash cows.

      Alwyn van der Merwe - 2013-09-17 13:24

      Actually government dictates the pricing. Completely synthetic pricing mechanism. They are ultimately the guys pocketing.

      hein.huyser - 2013-09-19 10:27

      MT, here's one for the conspiracy theorists. How about it's a ploy by gov to make fuel so expensive, that by the time we get to choose toll vs another levy on fuel, the choice will go in their favor ;-)

  • Charles Booyzen - 2013-09-17 10:45

    I think we missing something here.It's not just the oil price and the Randela weakness . There are other parts to the petrol price. Fuel tax,Customs &excise, Equalization fund levy(what ever that is)Road accident fund, Transport cost, Petroleum Products Levy, Wholesale margin,Retail margin, Slate levy, Delivery cost,DSML ,Incremental Inland Transport Recovery Cost. We seem to be paying around R4.60 p/l or R3.60(keeping road accident fund) for taxes and other regulatory jargon .The taxes on fuel increased from R1.97 in march 2013 to R2.12 from April on wards. I know my analysis is flimsy but still why is it necessary to milk the consumer? surely the taxes can come down a bit to help the citizens out? Then again whats the chances of something like that happening?

      hein.huyser - 2013-09-19 10:30

      Zero chances, not as long as we have 13 Kings and a political monster to keep in their plush conditions leeching on the taxpayer. The only way this will change is if we change the decision makers.

  • Harold Hardrada - 2013-09-17 10:49

    Oil prices today are like gold was half a century ago. They are a key asset underpinning the value of the global currency (US Dollar). This means that rapidly rising oil prices actually indicate a steep decline in currency value (rather than the asset itself becoming expensive due to scarcity - though this would change if and when we hit peak oil). Thus our actual problem isn't the rise in oil value, but in the decline in value of the Dollar (and every other currency linked to it vis a vis global trade and international exchange). The huge levels of currency printing and unsustainable debt in the last decade have exacerbated this and we are essentially watching a slow-motion currency collapse. Since all fiat currencies are in the same position, the only way to judge actual currency strength is oil prices and basic food staple prices, as these are essential consumables. Governments are misreporting the actual inflation rates and thus it looks like an oil supply problem, rather than a currency crisis. In short - the whole world is becoming a slow-motion Zimbabwe economy. Get ready for an economic paradigm shift when the collapse becomes impossible to deny any longer. Make sure you have REAL assets to trade then, because money won't be worth the paper it is printed on (literally).

      TaniaSS - 2013-09-17 23:14

      I hope you are a lecturer. Precise, to the point, understandable.

  • Peejay MacLane - 2013-09-17 10:50

    I believe proper reliable public transport and schools, clinic (health centre) and shopping center for every suburb or section of the township to reduce the consumption of petrol. Unfortunately people will raise against their government soon due to high cost of living. With the actual inflation at 14% while salary increase are at an average of 5.5% p.a the working class will down their tools and the government will feel the pain

  • Richard Barreto - 2013-09-17 10:55

    Whats actually happening is an attack on the South African motorist by a brain damaged ANC. They are pushing up the fuel tax in order to reclaim the losses incurred with the E-Tolling system in Gauteng. They spent a fortune implementing E-Tolling only for the whole damn country to refuse the system, but they still sitting with the bill... The increased fuel price is how these snakes are taking care of that problem with zero regard for how the exploding inflation is going to effect the poorest South Africans. Typical ANC policy: for every step taken in the right direction they run a marathon in the opposite direction!

      Stefan Van Der Spuy - 2013-09-17 11:36

      Have you seen SANRAL's pathetic attempt lately with their ad's in the papers, trying to justify the e-tolling system? By the way, what steps in the right direction are you referring to? I can't recall any...

      hein.huyser - 2013-09-19 10:34

      Stefan, they are not halfway with the "marathon", give them time

  • alfonso - 2013-09-17 11:22

    so... and how much is flowing into the goverments pockets as a hidden tax???!!!!!

  • David Maree - 2013-09-17 11:24

    I just ride my bicycle to most places. Costs me nothing. But i do agree. Fuel prices are crazy.

      Joe Irwin - 2013-09-17 18:59

      Good for you mate. The handicapped and elderly don't have that luxury. Many of the poor cannot afford a bicycle either.

  • Manfred Qhaddafi Meyer - 2013-09-17 11:42

    This is simply murdering the middle class, the backbone of any economy, one liter of fuel at a time. We should seriously convert to an energy source other than petroleum as soon as we can. The technology is there. Only problem is, the world economy has been setup to run off petroleum. Solvents, Ink, upholstery, trash bags etc etc. The powers that be will milk us for every penny until the earth's reserves of petroleum run dry.. then they will simply conveniently switch us to something else they can make us pay for. Instead of fuel, you might be filling your car with hydrogen, at R12 a liter lol

  • Pierre Meyer - 2013-09-17 11:42

    @ Graham....bear in mind u get paid in pounds.....15 to the rand

  • Sisie Indola - 2013-09-17 12:08

    I always wanted to know how the h*ll they work out this petrol price locally. To me this is a total rip off. In 2001/2002 when the rand agaist the dollar was over R20 to the dollar the price at the tank was not R10 per liter. Then just a few years ago when the price of oil was $174 per barrel the price at the tank was at R11. So when the h*ll do they come up with this rip off price. Its the government that is ripping off their own people, because everyone has to use petrol in one form or another. To transport goods, to get from A to B - everyone. So the government is happily filling the coffers from the people. They are a disgrace. It's what the people have been saying for years the petrol price just doesn't calculate, but do the government care not one iota. They need to put a moratorium on the price of fuel. Please don't come to me with that cr*p that the rand is weak and the price of oil is high - it really doesn't wash anymore.

  • Blackhole_Sun - 2013-09-17 12:43

    If a substitute for petroleum is not implemented soon, the average SA household might have to choose between petrol in their car or food on the table in the near future.

      hein.huyser - 2013-09-19 10:38

      Already happening BS, watch this worsening when this fuel price hits the shelves.

  • Hex - 2013-09-17 12:44

    The full horror is the state of public transport. Where are the rails being built? Our governments lack of foresight and planning will be very detrimental to the economy and growth of our country.

      Robert Burroughs - 2013-09-18 22:59

      @Hex. What public transport?

  • DarkVoid - 2013-09-17 12:50

    Who are these comment Nazis that get offended by me telling government to go **** themselves?

  • Imani Azania - 2013-09-17 13:02

    government must seek from sources within Afrikha....there will be no need to use the dollar as exchange..Afrique can solve its own problems

      hein.huyser - 2013-09-19 10:46

      Yep, ask Zimbabwe. Agh sorry, not them, they are using the Dollar. Ask Angola, eish, they also use the Dollar as a measurement, better ask Swaziland, maybe they... nope, theirs are coupled to the Rand as well. Seems Moz is our answer then, they have a very strong currency... eish, not so. They are still paying off, on the sinns of pathetic political leadership. Maybe a bit further uo North then. Kenya, yes Kenya is the answer then. last I heard the PM do not even have a presidential aircraft anymore. But we are African, therefore, let's follow the direction the rest of Africa has given us, from cars to barefoot, from airplanes to barefoot, from ....... you get my point? We are part of the global economy, be better than them or ..... go barefoot

  • Nhlanhla Madide - 2013-09-17 13:13

    Our finance minister is whack.

      Desiree Kathleen Deysel Kemp - 2013-09-19 08:33

      Ja and he needs a whack...to the head. Ga! I'm tired of having to feed m car while my kids starve. Screw this!

      hein.huyser - 2013-09-19 10:49

      NM, the Finance Ministry only implements and reports on policy successes or failures as prescribed by gov. Move your blame to the right people

  • John Stoltz - 2013-09-17 13:40

    Word has it that you buy South African fuel cheaper in neighbouring countries than locally ?? And while we are at it, why is SASOL enjoying fuel pricing linked to crude oil prices, while coal prices comparably goes for a song ??

      Khutso Mokami - 2013-09-17 18:23

      My point exactly,we don't actually benefit having their plants in this country

      hein.huyser - 2013-09-19 10:52

      Johan, here's your surprise of the day. The coal Sasol is using is not the grade used by the power plants. It's unusable cheap coal that was thrown away for eons. That made the Sasol project such a unique phenomenon. But good question in the right direction, nevertheless.

  • Richard Beynon - 2013-09-17 14:24

    In 1975 it cost me R6.00 to fill my tank. 38 years later, it costs plus-minus R750. Over that same period, inflation has eroded the rand by some 120 times. 120 x R6 = R720. So actually, I don't think that it's as awe-inspiringly bad as this article suggests.

      Know it all - 2013-09-17 17:43

      I'd be interested to know how you came to the figure of 120 as its very convenient...is there something that costs R120 now that was just R1 then? and secondly...i think he's point is the increase is not equal to salary increases therefore diminishes buying power and hinders economic growth...

      ELana Bronkhorst - 2013-09-19 04:58

      I've got some receipts of a visit we made to Van Riebeek hotel in G.Bay W/Cape 1973. This might stun you: Accomodation for 2: Frid checkin - Sun afternoon checkout. Included, breakfast in bed Sat with all trimings,included 11.am trip to see mouth of Steen Bas Dam, with afternoon braai, return to hotel. Sat even dinner dance, 5 star meal (meal paid seperate) wine on house. Sunday breakfast again, 10.00 am boat trip around False bay, back to hotel for 5 star Sunday lunch carvery with all triming + desserts to die for! Total cost R6.44 per person or R12.88 per couple. Sat dinner prices were: 2 x Advocado Ritz @ 30 cents = R0.60 2 x Lobster bisque soup @ 28 = .56 1 x Lobseter Thermodore = 2.64 1 x Black pepper steak (fillet) 1.32 1 x icecream hotchocolate sauce .28 1 x pot coffee (2 people) .30 Total restaurant ...............R5.70 Total hotel accomodation R12.88 Total: Weekend trip accomodation plus meal for 2 people in fabulous hotel, grand dining, full stylish band, classy place = R18.58 Can you even buy milk for that today???? Visited G.Bay 2012 and was horrified to see that beautiful hotel gone, nothing in it's place, just weeds. G.Bay doesn't even look or feel the same. 30 years ago S.Africa was known for one of the higest standards of living in the world! It also had the lowest cost of living. Was a safe place to visit. Today, it's opposite.Poverty evident, shacks for miles, unsafe, everyone struggling to make ends meet. Cities are dirty,:-(

  • George Rudman - 2013-09-17 15:21

    How did Sasol's dividend per share change over this period ? Would it have helped if you bought Sasol shares in 1998 ?

  • Jonathan Cherry - 2013-09-17 15:22

    You can of course make a plan to use less petrol.

      Robert Burroughs - 2013-09-18 23:05

      @Jonathan. Wish I could use less fuel. I have a Yaris and I try for one filling a month. If you can find me a car that is of a similar size, 5 seater, and gives me more than 16.5(+-)kilometers per liter, please tell me.

  • George Rudman - 2013-09-17 15:32

    How did Sasol's dividend per share increase over the same period? Would it have helped if you bought Sasol shares in 1998?

  • Brightness Gupta - 2013-09-17 15:36

    Eish

  • Dany Duprez - 2013-09-17 15:58

    it is not so much the petrol price as the never stopping increase in taxes to pay for the ANC's corrupt expenses

  • Andre Oosthuizen - 2013-09-17 16:37

    Buy oil from non OPEC countries,and we will have a huge drop in price at the fuel pump

  • James Smythe - 2013-09-17 16:46

    A cartel has operated in the global oil industry for over 100 years. The US anti-trust cases in the early 1900s did not stop this. I used to work for one of the 'big five' oil and fuel companies, the second largest in the world at that time in the late 1970s. I saw the effects of the cartel pricing at every municipal/state tender opening I attended - that was many! We are being screwed but there is nothing new in that - however in the last decade or so, we also have seen government taxes etc which have grown to be grossly disproportionate. A large part of the pricing problem lies right there!

  • Louis Cronje - 2013-09-17 16:54

    R 11.30 is the current price of Petrol in Swaziland. they import all their petrol from South Africa

  • Siobhan Roux - 2013-09-17 16:55

    Oh no - where will it all end? can't afford to go to work and back anymore :(

  • Khutso Mokami - 2013-09-17 17:51

    most of our petrol and diesel is from Sasol,which of do not use crude oil as the feed to produce these fuels but fischer-tropsch synthesis...we should be benifiting from this kind of process applied at Sasol bt even though Sasol does not depend on crude oil to produce their fuels,when the price of crude oil increases they also increase theis prices.....so are we benefitting in having Sasol in our country and being the leader in the Fischer-Tropsch synthesis worldwide?

      TaniaSS - 2013-09-17 23:33

      Full marks for that statement!

      Andre Maritz - 2013-09-18 10:28

      Most of fuel do not come from Sasol's Fischer-Tropsch synthesis. In fact, Sasol (with their process) can probably not supply the whole of Gauteng.

  • Prakash Singh - 2013-09-17 18:16

    Each time petrol price goes up, SASOL directors rub their hands with glee. Only country in the world that produces fuel but have to pay the ridiculously high price. What happens to SASOL'S production?

      Khutso Mokami - 2013-09-17 18:25

      exactly my point...

      Marie Bouillon van Vrede - 2013-09-17 20:13

      I was in Swaziland resently and to my surprise the price of petrol at only E11.10 p/l wich comes from Sasol what a threifing business

      Fanie Mthethwa - 2013-09-18 06:49

      @ Marie : You are addressing the symptom and leaving the problem. First things first Swaziland's Motor Vehicle Accident Fund is a third of SA in the price build cpl but operating at a surplus vs SA. Secondly, Swaziland' s slate under-recovery for August was at about R1.25 per liter. The real problem therefore is at source (refinery and BFP formula). The use of archaic , inefficient assets to boil crude oil and waste scarce electricity in the region ( for the love of assets) is now being passed on to the motorist. The owners of these archaic assets have a way of perpertually hood winking SA government on their importance.

  • Rivaaj Ramdas - 2013-09-17 20:20

    The govt has failed us...this country is going to the dogs...the ANC will always be my political home...BUT that does not mean I'm going to allow the ROT to continue...I believe that even if we love the ANC we must not vote ANC next year...because we need a strong opposition...I for one will NOT forget the fact that under the ANC led goverment the poor had to take to the streets in the form of service delivery protests...its sickening that sentences handed out by the courts to connected people was disregarded and today fraudsters sit at home instead of jail...the shaiks and yengeni's have made a mockery of our judicial system....I for one will be registering my dissatisfaction with the pathetic state we find our country in at the next election...and the ridiculous cost of fuel in this country is what FUELS my desire to end the rot...for the sake of our people...damn party politics....now its people politics!

  • Xenswim1 - 2013-09-17 20:38

    We already mix 10% sasol into all our feuls on the reef but pay premium prices. Compared with the rest of the globe Diesel is by in larger overpriced in SA.

  • Basil Alley - 2013-09-17 21:15

    The real thieves are the oil companies. We should buy our oil from Iran .

  • Kevin Seyffert - 2013-09-17 21:38

    hmmm, lets please not forget the massive Tax burden that is carried in the fuel price as well.

      TaniaSS - 2013-09-17 23:37

      Check the fuel levies on International flights. Paying for the mistakes of an individual. I am sure he is living a stress-free life somewhere.

  • William Franklin - 2013-09-18 00:17

    I live in Norwich in the UK, Close enough to the city to walk in, If I need transport I take a cab,or catch the bus,I have a bus pass so no cost there. We hire a car when we go on holiday. My average transport bill per year could total what my freinds pay just for their car insurance. Running a car here is expensive, for this reason I choose not to have one, and for environmental reasons. The only thing a car gives you is the convenience of travel when you need it. When I lived in SA I ran up to four cars at one time. Transport wise I am happy being here.

      Robert Burroughs - 2013-09-18 23:16

      IF there was a reliable public transport system in this country I'm sure people would use it. I live in Bothasig and to get to Goodwood I have to take a bus to Maitland and then another to Goodwood, which by guessing is about 20 odd Kms, and possibly 1.5 hours traveling time. Going by car it's about 7Km and 15 minutes. Now pray tell, how does that sound? Car or bus? By the way there is no train service for this trip! OH, and I guess it works out cheaper going by car.

  • Tony Kennedy - 2013-09-18 05:12

    Exclude the taxes that are included in the fuel price to see the real cost of fuel. I guess it would be half of what we are paying.

  • Fanie Mthethwa - 2013-09-18 07:07

    The pump price of fuel has largely to do with the methodology used to bring the product to the motorist. First we pay a lot to produce the electricity used by refiners and in the process emit a lot of CO2 to our environment burning coal. Then we get into our overalls and safety shoes to fix obsolete refineries that run on prayer and worn-out bolts and nuts. Then we employ clever oaks to present a spreadsheet justification for the deemed landed price of fuel (BFP) making stupid assumptions like importing finished product from the Far East (as if its an option!). Then we host a lot of global labour to keep this system going with some credibility....when prices go up we blame each other and government for stupidity...meanwhile the real beneficiary to our confusion is out there in world playing solitaire and buying shares on the stock exchange using hard currency!

  • Bruce Lawson - 2013-09-18 07:49

    This is punishment for not accepting tolls - I wonder what the ACTUAL cost of petrol is before all the BS taxes???

      Andre Maritz - 2013-09-18 08:00

      Go to the Dept of Energy website. The exact calculation of how the fuel price is calculated is there, complete transparent.

  • Andre Maritz - 2013-09-18 07:59

    In the 15 years between 1970 and 1985, the fuel price rocketed from 9c/l to R1/l. My math is terrible, but that is about 1100%.

      Robert Burroughs - 2013-09-18 23:21

      Andre Maritz. What do I say? When I bought my first car in 1959/60 petrol was about 2/6 (25c) a gallon(4.5 liters) which works out to +-5.5c liter!

  • Kevin Daniels - 2013-09-18 07:59

    The state of the fuel price is not just about external factors and internal instability, it is also about the greed of our dearest government, the tax rate per rand is beyond ridiculous. I guess someone's got to pay for Nkandla.... and Yengeni's Maserati and ....

      Andre Maritz - 2013-09-18 10:30

      How would you explain the 1100% price increase between 1971 and 1985? How woul dyou explain the fuel levy added to the fuel price in the mid 60's to pay for a fuel pipeline which was only removed by the ANC government in the 90's, even though the pipeline ws paid for in the 70's?

  • Marc Rabie - 2013-09-18 08:13

    I would like to see a comparison of how much (in percentage) the rand has weakened against the greenback and how much more expensive brent crude (in percentage) is since 1998. That would be a real lovely comparison. I guess we would soon learn that government over tax fuels - very much like the UK. So blame whoever is in power for driving up your monthly expenditure on fuel.

  • Marius van der Sandt - 2013-09-18 08:26

    BIO fuel in SA is not an option as there is not enough reserve crops to produce these from. This due to farmers leaving the country to escape murder and victimization. Thanks to our public fantastic public strategy.

  • Jacques Steffen - 2013-09-18 09:00

    Correct, but why is everybody still speeding? Nuff said ...

  • Tony Wellman - 2013-09-18 09:19

    Some people blame the ANC - its not only the ANC. the DA is doing the same with i.e. property tax, especially in cape town. So many (especially the average politician) suffer from a selfish "i want more" or "it must increase syndrome". Capitalism is being abused - since the majority of those working hard every day are getting poorer - and those on strike are earning more. Time to do something. Ever since the children went to primary school, the yearly increase in school fees have been way above the/my average increase in private sector salary increases. And can we survive the economical destruction caused by short-sighted unions?

  • Vince Gordon - 2013-09-18 09:37

    Why is Sasol the same price as other fuels?

      Andre Maritz - 2013-09-18 10:31

      Because if they were lower, no one would use the other companies and Sasol cannot supply in the South African demand.

      Jacques Gerber - 2013-09-20 09:00

      Because of an historical agreement that if oil is less than $15pb state will subsidize Sasol production costs. Archaic, but the ANC keeps feeding Of it

      Jacques Gerber - 2013-09-20 16:15

      Because of an historical agreement that if oil is less than $15pb state will subsidize Sasol production costs. Archaic, but the ANC keeps feeding Of it

      Jacques Gerber - 2013-09-20 17:34

      Because of an historical agreement that if oil is less than $15pb state will subsidize Sasol production costs. Archaic, but the ANC keeps feeding Of it

  • Patrick Bertieaux - 2013-09-18 09:43

    Bolivians are exempted from tax fuel levy .The price of gasoline in Bolivia is 0.41 EUR per liter which is 64% lower than the average world price of gasoline: 1.13 EUR. The price of diesel in Bolivia is 0.41 EUR per liter which is 59% lower than the average world price.

      Andre Maritz - 2013-09-18 10:32

      Must be why Bolivia have no roads to speak off.

      Petrus van der Walt - 2013-09-18 10:50

      No anc thieves there

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