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A Fin24 user wants to know why Sasol [JSE:SOL] fuel, which is made from coal, governed by the oil price.
ROY FRY was responding to an article Fin24 published which compared local petrol prices with the top ten most expensive countries for petrol and stating that South African motorists were still okay.
The reactions on the article were mixed, with some expats sharing how much they have to fork out for fuel in their neck of the woods.Fry concurred with the comments of several people that apples must be compared with apples as in his opinion South Africa is extremely far from a fully developed country and by no means First World.
However, he said, his main area of concern is if the skyrocketing price of petrol is attributed to the price of Brent crude and the rand dollar exchange rate, then why is Sasol's fuel, which is manufactured from coal, governed by the oil price.
"Sasol was developed because of all sorts of embargos (sanctions) to alleviate the problem but now, how many years later, and the South African consumer is still not benefitting from it.
"The best part of thirty years ago the excuse was that they would not be able to keep up with the demand. Is that then still valid all these years later?"
