Fuel Price?

[pietpetoors]

I can never understand the "logic" about the fuel price.

The oil price is at a long time low, today $76 per barrel.

A while ago when the rand was hovering around R7.50 to the dollar and oil price around $115 per barrel the fuel price remained stable.

Now the rand went up to R8.20 and the oil price came down to $80 per barrel and our brilliant government decided to increase the fuel price and their (as always) lame excuse is because the rand weakened to the dollar.

Am I missing something here? Somewhere something is terribly wrong.
Seems the government is bull $ hitting the whole country about this.

Now because the fuel price goes up for no real reason, transport will become more expensive and soon the price of everything else will increase, but our government is too dof to understand that. But don't worry, they will still tell you that inflation is only 5%

[JohanM]

Pieter,

not trying to be funny here, but there is no logic when it comes to our goverment and there lame explanations....

They are bullying us to line their pockets with our money. Always the same story. With your explanation to how they oil price and fuel price relate, im with you on that one, they are obviously misleading the public here, and most of the population are to ill minded to see what is actually going on.

[Royco]

Brent Crude Oil has not been below $100 since Feb this year.
I think you're looking at the CRUDE Oil price, but the Brent Crude Oil price is the average they use to calculate the fuel price ripoff.
Oh, and this was included in the hike motivation:

This hike is necessary to cater for wage increases of 9% this year for service station industry staff agreed between unions and the Petroleum Retailers Alignment Forum.

http://www.fin24.com/Economy/Motorists- ... e-20110930" onclick="window.open(this.href);return false;

[cheetah]

The goverment is using this excuse of the fuel increase every year. :evil:
I sometimes wonder what is behind this.

[pietpetoors]

Thanks Roy, maybe I hold the cat on the back side then
I just check the Oil price on my trading platform.
Attached is the picture I see each day and then I have to hear that the fuel pric goes up, but my pictures shows a downward trend.

Think you are right, I did not think about oil vs brent crude

[KPC]

The explanation is so that the servise station can made an 15c p/l profit increase. I still think that the Gov is stealing our money.

[Royco]

Besides the actual oil figures, I'm pretty sure that they have some sort of weird way of working the fuel price out.
Often it would appear (to me) that the R/$ and Oil price improves and we get a 3c reduction, then a little bump in the exchange rate - BAM! R1.15 price increase....
And yes, this does affect the inflation rate!!

[Gunta]

Pieter, don't know where you saw that price for oil. The price I have seen is $107, but I agree with you anyway on the price. They just keep loading tax onto the fuel which is why it keeps going up.

[pietpetoors]

Roy was right, I saw the normal crude price not the brent crude
See the difference in price at
http://www.oil-price.net/" onclick="window.open(this.href);return false;

[pietpetoors]

Hey, it is not only us, look on the oil site I referred to just now, check this article:
http://www.oil-price.net/en/articles/re ... -slide.php

[Gunta]

In SA price of oil 20%, Tax 50%, Bribes 10%, Supporting the taxis 10% and the rest 10%

[Royco]

Here's an interesting flash picture on the cost breakdown.
http://www.sasol.com/sasol_internet/fro ... price.html" onclick="window.open(this.href);return false;
But I think Mark has it 100%...

[pietpetoors]

Today I feel like a very rich man, I own a Hilux WITH A FULL TANK of PETROL

[Gunta]

You have made the oil sheik very happy and to make him even more happy you can fill up my tank as well

[kfxnando]

well allow me to pop the bubble that the government is robbing us
nothing would give me more pleasure then to be able to prove this, however in this case besides the taxes levied on the price of fuel its not happening

one needs to look at that oil cost here by us
take the price of oil, where we get it from, not that 80odd $$, that is what the Americans are getting it for, and the difference has never been that big, and multiply it by the Rand/$ exchange rate, and you will be shocked at what it comes to

self have tracked it from time to time however have not updated it regularly, as I keep saying that I will

http://www.kfxnando.com/viewtopic.php?f=26&t=21" onclick="window.open(this.href);return false;

self would not be surprised if we end up paying 11 to the liter soon, however with another recession looming, we could end up with the price of oil collapsing again, that is what happened last time

sorry crystal ball broken

[Gunta]

So explain what is the issue with Sasol since it is not made from oil and is supposed to subsidise our petrol.

[2.8 d/cab SFA]

toll roads they said no increase in levies to pay, so law abiding road users pay tolls, and they increase the fuel price no reason to fund it. So if you abey and comply you pay double.

[kfxnando]

So explain what is the issue with Sasol since it is not made from oil and is supposed to subsidise our petrol.

sasol, now that is the big rip off, hence how sasol makes profit, as the agreement that their price will reflect the price of crude oil

and from their profits they are about to expand

[Gunta]

So we continue to get shafted. If neighboring countries were closer I would fill up there since petrol is cheaper and we supply them too.

[Ou vale1]

So explain what is the issue with Sasol since it is not made from oil and is supposed to subsidise our petrol.

sasol, now that is the big rip off, hence how sasol makes profit, as the agreement that their price will reflect the price of crude oil

and from their profits they are about to expand

Remember that Sasol are currently on shutdown and production is down to 30%. They have to increase the price to pay us poor buggers who work our butts off to get them back online

[Gunta]

Why is Sasol on shutdown?

[Ou vale1]

Why is Sasol on shutdown?

Annual maintenance routine

[Gunta]

So why do they have to shut down to do maintenance. Surely they can do maintenance at the same time without having to shutdown.

[kfxnando]

Mark, for safety reasons shut down is nessasery
it also allows to make sure that when the plant runs, the chances of a breakdown is minimised

also have friends and family at secunda, and yes they are busy with a shut down

oone of the things they are busy with is changing the air filters on those stacks/towers to clean up the air around there

[pietpetoors]

http://www.bdlive.co.za/business/energy ... o-drop-69c" onclick="window.open(this.href);return false;

THE price of all grades of petrol will drop by 69c a litre next week, the energy department said.
The price of diesel (0.05% sulphur) will decrease by 53.50c a litre, and that of diesel (0.005% sulphur) by 54.30c a litre.

[Mud Dog]

IIRC they also said that there may be a further fuel cut on the horizon if the situation remains stable.

They seem to do this every year around this time so as to 'assist' holiday travellers and make everyone a bit more pleased with their efforts, but come January the price goes up beyond where it was before the December cut/s.

[Obelix and Dogmatix]

Saw something on news 24 that the oil barons of Saudi are trying to force the yanks and there oil they get from there fracing into a price war. This can only be a good thing for us.

[ChrisF]

Saw something on news 24 that the oil barons of Saudi are trying to force the yanks and there oil they get from there fracing into a price war. This can only be a good thing for us.

by all accounts the OPEC group wants to LOWER oil prices for a period of two years to kill off alternative fuel programmes ...


let's see how this one plays out.

[Rebel 4x4]

Why must diesel always come down less than petrol? Diesel is a by-product from petrol....?Surely it can go down at least the same as petrol.

[pietpetoors]

by all accounts the OPEC group wants to LOWER oil prices for a period of two years to kill off alternative fuel programmes ..

I think it is too late for them now. They dug their own graves.
If the fuel price comes down, many alternative fuel projects will halt or slow down. But because fuel price as so high for so long, the electric car market boomed and huge industries were developed because of high fuel prices. Those electric car factories will not go away, they will just keep on growing.

There are Cities in Taiwan where their whole public transport bus fleets are already running 100% electric buses. There are Chinese companies who are building thousands of electric cars per year and when in China you hardly ever see a petrol scooter or bike, they are all electric. It is only in SA that we take long to adapt.

The world saw that they cannot trust the oil producers. Alternative fuels may go away with lower fuel prices, but electric vehicles will not.

[Rebel 4x4]

by all accounts the OPEC group wants to LOWER oil prices for a period of two years to kill off alternative fuel programmes ..

I think it is too late for them now. They dug their own graves.
If the fuel price comes down, many alternative fuel projects will halt or slow down. But because fuel price as so high for so long, the electric car market boomed and huge industries were developed because of high fuel prices. Those electric car factories will not go away, they will just keep on growing.

There are Cities in Taiwan where their whole public transport bus fleets are already running 100% electric buses. There are Chinese companies who are building thousands of electric cars per year and when in China you hardly ever see a petrol scooter or bike, they are all electric. It is only in SA that we take long to adapt.

The world saw that they cannot trust the oil producers. Alternative fuels may go away with lower fuel prices, but electric vehicles will not.

SA is actually ahead of time. By when SA have 100% vehicles running "electrically", we are all stuffed because of the huge increases we are going to face for the next 8 years because of Eskom not calculating correctly what they need to run SA effectively with power. But in the mean time it was the plan of Eskom all along! Not even electricity will be cheap!