lucifir
Expert Member
somehow though ... CPI will never take these increases into account and we will come out short come increase time 
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Question of the Day: Have you ever ordered a product online and received a fake knock-off?
Article: Fuel to increase by 29 cents
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superskully
Expert Member
Now i am defn NOT defending the govt, but i rather have the tax on fuel then on our salaries, this means that taxis... are taxed as well.
I do feel for the poor though.
So enough defending.
The questions you should be asking are:
The increase is due to troubles in our own continent.
So why does our govt not use a company like Sasol - who produce 20% fuel from coal; but dont they tax Sasol more heavily?
Then why has Shell been given rights to dig in the karoo and not Sasol (or plan to dig).
The answers, blackmail and bribes or lack of in Sasol's case.
A company like Shell can blackmail our govt.; cos they can. As they did when the govt. were planning to build a refinery thro Petrosa somewhere down south (PE?).
So much politics.
I can go on...
I do feel for the poor though.
So enough defending.
The questions you should be asking are:
The increase is due to troubles in our own continent.
So why does our govt not use a company like Sasol - who produce 20% fuel from coal; but dont they tax Sasol more heavily?
Then why has Shell been given rights to dig in the karoo and not Sasol (or plan to dig).
The answers, blackmail and bribes or lack of in Sasol's case.
A company like Shell can blackmail our govt.; cos they can. As they did when the govt. were planning to build a refinery thro Petrosa somewhere down south (PE?).
So much politics.
I can go on...
+1
I don't see why Sasol are allowed to put their prices up when the oil prices go up.
Their input costs don't change so why are they allowed to charge more?
Isn't that blatant price fixing?
Rkootknir
Expert Member
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Sasol doesn't have anything to do with pricing, the Department of Trade and Industry calculates the fuel price.
If you're on the Highveld be glad for the regulation. Most of the fuel here comes from Sasol and their costs are lot higher than any of the oil majors' costs - so if they were able to set their own prices it would probably be more expensive than what we currently pay.
[ETA]
And since there is currently no cheap way to transport fuel from the coast to the highveld the coastal refineries probably won't be able to compete either. This might change when Transnet complete their new pipeline from Durban to JHB.
Oh, so we can blame the government yet again.
If Sasol's costs are a lot higher than the oil producers costs then how are they able to generate a profit when the prices are low?
AFAIK Sasol were still making money when ULP 93 was R5.82 in January 2009.
For the six months to December 2010, the chemicals and petrochemicals giant suffered a 51% reduction in operating profit to R10.5-billion and a 52% drop in headline earnings a share to R10.67. (Brent was trading at $60 a barrel)
http://www.timeslive.co.za/business/article344798.ece
R10.5 billion profit when things are going bad is still very good money so I can only image how much money they are printing at the moment with Brent at $120+ a barrel.
