Another fuel price hike coming

[xrapidx]

LOLz - starting to think the petrol price has a better sex life than me - up-down-up-down-up-down.... ALL THE DAMN TIME... But mostly up.

http://www.fin24.com/articles/default/display_article.aspx?ArticleId=1518-25_2548971

Johannesburg - Petrol prices in South Africa could be hiked at the beginning of September by about 30 cents per litre.

The country's daily unleaded petrol price has been in an under-recovery position since the start of August, according to data from the Central Energy Fund supplied on Wednesday morning.

South African petrol pump prices are fixed once a month. An under-recovery means consumers pay less for petrol than the actual price, which takes into account the continuously moving rand/dollar exchange rate and international product prices.

The Gauteng pump price has been 769c/litre of unleaded 95 since August 5.

Since that date, consumers have paid on average 40c/litre less at the pump than the actual cost of petrol.

At this point in the month, the department of minerals and energy could increase the unleaded 95 price per litre by as much as 40c. However, petrol's under-recovery could ease somewhat later in August.

On Tuesday, South Africans underpaid only 26c for a litre of unleaded 95.

"It looks like they will hike, unless we have a huge rally in the rand in the next few days, which is not likely," said Jean Francois Mercier, chief economist at Citi SA.

He added that the rand and oil prices are seen as relatively range bound, without any drastic moves, for the next week or so.

"I don't think we will see a hike as big as 40c. An increase of about 20c or 30c/litre is probable," he said.

The present average under-recovery of diesel with a sulphur content of 0.05% is 37c/litre.

 

[hj2k_x]

Steadily climbing yet again

 

[bullfrog]

Dammit, I knew I should have invested that 200k in petrol when it was still R5

 

[LancelotSA]

Fuel price history all the way back to 2001

Composition of the petrol price

 

[hj2k_x]

Fuel price history all the way back to 2001

Composition of the petrol price

Great links

 

[hj2k_x]

R3.62 in 2001. Man, that feels a lifetime ago.

 

[LancelotSA]

Dammit, I knew I should have invested that 200k in petrol when it was still R5

Petrol price
Apr 2005 R5,03
Aug 2009 R7,69

53% return in just under 4 and a 1/2 years or an annual return of 11.75%.... not that spectacular. You'd have done better invested in a top 40 index tracker

 

[bullfrog]

ok fine w/e, R6 then

 

[Smooth Criminal]

On 20/12/2001:
R/$ exchange rate: 13.0028
Brent crude oil price (average for the year): $28.03/barrel
Cost per barrel in rands: R364.47
Fuel price: R3.58

On 14/08/2009:
R/$ exchange rate: 8.0274
Brent crude oil price (average for the year so far): $43.56
Cost per barrel in rands: R349.67
Fuel price: R7.52

So the effective cost per barrel went down by R14.80, but the fuel price more than doubled. And I used the inflation-adjusted oil price figures, so inflation isn't the biggest reason. Somebody, somewhere up the hierarchy is lining their pocket.

 

[Fazda]

On 20/12/2001:
R/$ exchange rate: 13.0028
Brent crude oil price (average for the year): $28.03/barrel
Cost per barrel in rands: R364.47
Fuel price: R3.58

On 14/08/2009:
R/$ exchange rate: 8.0274
Brent crude oil price (average for the year so far): $43.56
Cost per barrel in rands: R349.67
Fuel price: R7.52

So the effective cost per barrel went down by R14.80, but the fuel price more than doubled. And I used the inflation-adjusted oil price figures, so inflation isn't the biggest reason. Somebody, somewhere up the hierarchy is lining their pocket.

That is a fascinating comparison! I would LOVE somebody to try and explain their story with regard to that one!!!

BTW, My dad bought a new Jaguar XJ6 in February 1973, and he was stuck in a meeting so asked me to take delivery of her. He also gave me R10 to fill up the twin 100 litre tanks....I was able to give him some change!!

 

[LancelotSA]

Ha ha so many paranoid people in this country... THEY are out to get us! THEY are ripping us off! Look here is the proof! ha ha

If you do some research you will find that the composition of the fuel price is readily available for all to see. Look at the link I gave above. It shows you exactly how the fuel price is arrived at. Oil prices are just one component. Freight costs to get the oil to this country anyone? Delivery costs to get the fuel to the pumps anyone else?

 

[Masked_Ichigo]

Darn it!!!

 

[Fazda]

Ha ha so many paranoid people in this country... THEY are out to get us! THEY are ripping us off! Look here is the proof! ha ha

If you do some research you will find that the composition of the fuel price is readily available for all to see. Look at the link I gave above. It shows you exactly how the fuel price is arrived at. Oil prices are just one component. Freight costs to get the oil to this country anyone? Delivery costs to get the fuel to the pumps anyone else?

Fair enough...can you then explain why SASOL ...the company that supplies the majority of SA...has to link it's price to the import bundle figure? Apart from making a really fat profit, that is?

And delivery costs to the pumps are influenced by....you guessed it...the PRICE of bloody fuel!!

 

[LancelotSA]

Fair enough...can you then explain why SASOL ...the company that supplies the majority of SA...has to link it's price to the import bundle figure? Apart from making a really fat profit, that is?

Yes, on that count you do have a point but obviously if Sasol were providing fuel at a few rand less than all the other fuel providers it would not take two guesses as to who most consumers would use to fill up. Now conservative estimates state that Sasol provides around 25% of SAs fuel needs (which is far from a majority by the way)... so if we all started using their cheaper fuel where would it leave the remaining 75%? Would we need to use that up first every month and then move onto the more expensive imported oil fuel?

Read this article for more on this subject...

 

[Fazda]

Lancelot, I will read the article now, however, I hope you realise that whether you have Shell or BP or engen in your car, it is all sourced from SASOL...particularly if you are in Gauteng, Freestate or KZN. The imported stuff mainly ends up in the Cape.

EDIT:

Just read the article, thank you...I rest my case on the SASOL story!!!

Here's a bit! AND it makes me sick!!

However, there is Sasol, our much vaunted fuel-from-coal developer and supplier. This company provides anywhere between 23% and more than 30% of our liquid fuel requirements.

Some estimates put Sasol's contribution to the country's fuel consumption as high as 38% of the country's fuel demand, but a Department of Finance task team reported in July 2006 that it was 23% or 45 000 barrels of oil per day.

Whichever way it is looked at, this is a substantial proportion of our oil and, therefore, liquid fuel requirement. Sasol also sells this fuel into the local market at the same price demanded for fuel made from imported oil. So it is no surprise that this company - 40% of it now owned by investors outside South Africa - records profits of about R100 million a day.

According to the latest estimates, Sasol's accumulated profits for the six years to June 2009 will come in at a whopping R112bn. The company's annual report forecasts that the net after tax income to shareholders will be R44bn next year, an increase of R19bn on the figure for this year.

 

[Smooth Criminal]

Ha ha so many paranoid people in this country... THEY are out to get us! THEY are ripping us off! Look here is the proof! ha ha

If you do some research you will find that the composition of the fuel price is readily available for all to see. Look at the link I gave above. It shows you exactly how the fuel price is arrived at. Oil prices are just one component. Freight costs to get the oil to this country anyone? Delivery costs to get the fuel to the pumps anyone else?

From your own link, transport and delivery costs make up a paltry 3.6%. Basic fuel cost and tax make up the bulk, at 81%!

I never suggested that the price should be the same as 2001, but certainly not over 100% more.

And I'm all for being pro-SA, but I think you're taking it to a whole new level when you fail to realise when you're being screwed As I said before, somebody is making a killing of this.

 

[rvonh]

As I said before, somebody is making a killing of this.

Never mind a killing. Think of slaughter when you bring LP gas into discussion.
In most other countries it is far cheaper to run a vehicle on LPG.
The price of LPG is directly related to petrol and the DME has a formula to list the refinery price of LPG to the price of petrol. This price has recently been published in the same bulletin for setting the petrol price. The current refinery price is R5.08/kg and what are you paying for your LPG refill? BTW that translates into R2.82/l. Onto these prices and margins for the distributors and vat. The sort of going price is about R160.00 for a 9kg cylinder. Oil companies are smiling.

 

[LancelotSA]

Yeah, that's right Smooth THEY are all out to get you. It is all a conspiracy.

I am totally impressed with the fact that the ANC is so powerful that they even have control over the fuel price in other countries and are able to line their pockets in these countries too! (But then again I must just be seeing that because I am "so pro-South African" and unlike the other blinkered "anti-anything in this country" types).


Truck drivers protest over fuel prices in Chile, Bolivia
Horns blaring, dozens of truck drivers have arrived in Washington to protest high gasoline prices.

Belgian truck drivers extend fuel protest blockade
Australian truck drivers join British fuel price protest

Blame OPEC if you want a scapegoat!

 

[LancelotSA]

Just read the article, thank you...I rest my case on the SASOL story!!!

Some estimates put Sasol's contribution to the country's fuel consumption as high as 38% of the country's fuel demand, but a Department of Finance task team reported in July 2006 that it was 23% or 45 000 barrels of oil per day.

You rest your case but you fail to answer my query relating to the part in bold above.

 

[Smooth Criminal]

LOL Lancelot wtf are you going on about? What conspiracy thing are you talking about? No, honestly.

Who cares about other countries, I'm sure they have problems of their own. Who's to say that they aren't being screwed too? Are you telling me it's not possible to shave off a bit of the tax levy, just to ease things for consumers a bit?

I'm sorry if not everybody is rich like you and is just willing to fork over any amount provided without questioning it. I apologise to your majesty on behalf of the man on the street.