Rising oil costs are not to blame for South Africa's high petrol prices, according to Outa

[mylesillidge]

Real reason South Africa's petrol price is so high

Two factors contribute significantly to South Africa's high petrol prices, and neither of them is the global crude oil price.

According to Wayne Duvenage, CEO at the Organisation Undoing Tax Abuse (OUTA), a weakening rand combined with the government's inclination to increase taxes on motorists is to blame for high petrol prices.

 

[G.A.S]

(10.77 - 6.29) / 6.29 = 71% tax "markup" in 2011
(19.47 - 9.37) / 9.37 = 108% tax "markup" in 2021

Or put another way, if the tax "markup" was kept at 71%, the petrol price would have been R16.04.

That is still too much ... I blame it on the poor performance of the Rand: using the raw data, a Big Mac costs R33.50 in South Africa and $5.65 in the United States. The implied exchange rate is R5.93 to the dollar.*

That means that the BFP should not be R9.37, but (9.37 / 15.26 * 5.93) = R3.64. Even adding 108% tax "markup", that would only yield a petrol price of R7.57.

And that is the real reason why the petrol price is so high.

*: Yes, I know the BMI does not take everything into account. But let's run with that.
**: All of us probably know why the Rand is so weak.

 

[Jet-Fighter7700]

you voted for them, so enjoy! you SUV driving Fools.

 

[Aghori]

Reason for high fuel price is greed. Nothing else.

 

[backstreetboy]

Thanks Sherlock. The masses take a taxi and couldn't care any less. Why the ANC is still in power.

 

[Aghori]

Thanks Sherlock. The masses take a taxi and couldn't care any less. Why the ANC is still in power.

Taxi fares will increase, people will moan and then forget about it as usual.

 

[Gazg]

Reason for high fuel price is greed. Nothing else.

To fund the ever increasing pillage of the RAF, due to the ever increasing "accidents" and unskilled drivers on our roads.

 

[Lupus]

Well considering the last time the oil price peaked at 111 the rand was at 8, so yeah a bit hard to really gauge.

 

[Leftfoot]

My question is how is the e-toll system being paid off? A few years ago it was announced that e-tolls would be scrapped but I believe there were still commitments to the overseas investors. All of a sudden we had a huge increase in taxes on fuels. I cant help thinking that a lot of the Taxes are covering the e-toll bill. I'm no expert but it seemed very co-incidental at the time. That increase back then has seemingly gone unquestioned and still forms part of todays costs.

 

[RaptorSA]

The petrol price is still way too low
I won't be happy until I see starving kids with flies buzzing around their heads.
I'm fully onboard with democracy, you should at least get what you vote for.

 

[ghostRgg]

Gives me another reason for a motorcycle.

 

[CruelBreeze]

Whoever put black text on a red background deserves life in prison.

 

[mypetcow]

The RAF and the levy only exists because not everyone can be bothered to get insurance. I don’t mean comprehensive vehicle insurance, I mean not everyone can be bothered to at the least get 3rd party insurance. This way everyone using fuel pays for some everyone else’s most basic ‘3rd party insurance’ for the inevitable day they are involved in an accident and don’t have insurance or money.

 

[ThinkCentre]

The reason is that they need more money and an increase in VAT does not go down well with the people!

 

[GhostSixFour]

Gives me another reason for a motorcycle.

DO NOT. I repeat, DO NOT. Ever. Buy a motorcycle to save money.. Or fuel.. It doesn't work that way.
Sure, you might get 0.8/100km better consumption, but your tyres are gonna die in 12000km, you chain, sprocket and gear needs maintenance and needs replacing, roughly 20k for the chain. Services are the same, roughly, only you need to do 2 of them - annual and distance. Insurance is more expensive, unless you have had your license for a while already. The gear is expensive, those need replacing as well.

Sure, buy it to save time if you commute a lot, sure buy it to feel freedom. Don't fool yourself thinking you're gonna save anything. And beyond that, even if you save some fuel on your commute, you'll burn it going on a trip over the weekend. And don't kid yourself and think that you won't, you will.

@Archer @SauRoNZA @Scary_Turtle @Hamster @SirFooK'nG @Steamy Tom - calling in some users from the motorcycle thread to give their experiences.

 

[Mekon]

To fund the ever increasing pillage of the RAF, with the so many "accidents" and unskilled drivers on our roads.

Morons at best. There are idiotic drivers all over the world but South African drivers being South African must be the best. Best at being the worst.

 

[dualmeister]

/shocked

 

[SirFooK'nG]

DO NOT. I repeat, DO NOT. Ever. Buy a motorcycle to save money.. Or fuel.. It doesn't work that way.
Sure, you might get 0.8/100km better consumption, but your tyres are gonna die in 12000km, you chain, sprocket and gear needs maintenance and needs replacing, roughly 20k for the chain. Services are the same, roughly, only you need to do 2 of them - annual and distance. Insurance is more expensive, unless you have had your license for a while already. The gear is expensive, those need replacing as well.

Sure, buy it to save time if you commute a lot, sure buy it to feel freedom. Don't fool yourself thinking you're gonna save anything. And beyond that, even if you save some fuel on your commute, you'll burn it going on a trip over the weekend. And don't kid yourself and think that you won't, you will.

@Archer @SauRoNZA @Scary_Turtle @Hamster @SirFooK'nG @Steamy Tom - calling in some users from the motorcycle thread to give their experiences.

Yeah, I dont ride everyday, only weekends / Adventure. Gear is very pricy (good stuff), easy R30 to R40k. Helmet good for 5 years. Tyres, depending on what you do, for me average is about 6000km on the rear, double on the front. Services once a year, @R2500 minimum. Fuel consumption for me is about 6.1l/100km which is half of my car.

New BMW's chain no need to service and last very long, sprockets, no Idea how long it lasts. My GS has a driveshaft (which has its own issues and needs servicing if it gets water in it).

Here is the scary bit, if you want to get into BMW Adventure riding, heres the cost:

BMW GS 1250 R310 000.00 or GSA 1250 R350 000.00
BMW Rally Suite +- R18 000.00 (Jacket) R11 000.00 (Pants)
BMW GS Helmet +-R13 000.00
BMW ADV Boots +- R6 500.00
BMW Gloves +- R2 000.00
Panniers & Top Box +- R30 000.00
BMW Nav 6 +- R12 000.00

Extras:
Radiator Guards +- R3 000.00
Skid Plate (Bash Plate) +- R4 000.00
Cylinder Head Protector +- R4000.00
Akropovic Slipon +- R18 000.00
Headers +- R12 000.00
Screen Stabilizer +- R2 000.00
Headlight Protector +- R1 500.00

Plus installation / labour costs

 

[Stuey74]

DO NOT. I repeat, DO NOT. Ever. Buy a motorcycle to save money.. Or fuel.. It doesn't work that way.
Sure, you might get 0.8/100km better consumption, but your tyres are gonna die in 12000km, you chain, sprocket and gear needs maintenance and needs replacing, roughly 20k for the chain. Services are the same, roughly, only you need to do 2 of them - annual and distance. Insurance is more expensive, unless you have had your license for a while already. The gear is expensive, those need replacing as well.

Sure, buy it to save time if you commute a lot, sure buy it to feel freedom. Don't fool yourself thinking you're gonna save anything. And beyond that, even if you save some fuel on your commute, you'll burn it going on a trip over the weekend. And don't kid yourself and think that you won't, you will.

@Archer @SauRoNZA @Scary_Turtle @Hamster @SirFooK'nG @Steamy Tom - calling in some users from the motorcycle thread to give their experiences.

Mostly agree, main consideration for me was time, after 4 hours to get home one wet afternoon in the car, back to bike commuting after many years in a car. 28l/100km (car) vs 5l/100km daily commute was also nice to exchange, only goes to 6l/100km on the weekend trips, ok maybe 7l when I did flat out almost all the way to the Poison rally a couple of years ago. Driveshaft, so just oil change for that when prescribed and service intervals. Insurance, cheaper than my car by some margin.

2003 Yamaha FJR1300 (comfortable for me and the wife, 3 boxes of luggage) vs 2009 Ford Territory ST (comfortable for me, the wife, 4 kids and twin axle trailer for camping).

Horses for courses, 6 of one and half a dozen of the other, have a vehicle for each need. Wife uses the YBR250 to drop kid at school, 3.5l/100km 10 years old, needs service once a year (time not distance), tyres and brakes so far 3 years and plenty of life. R1 gone cos it's a quick way to die but I do miss it.

Yes we have more vehicles than drivers, but each does its own dedicated job and is good at it.

 

[Hamster]

DO NOT. I repeat, DO NOT. Ever. Buy a motorcycle to save money.. Or fuel.. It doesn't work that way.
Sure, you might get 0.8/100km better consumption, but your tyres are gonna die in 12000km, you chain, sprocket and gear needs maintenance and needs replacing, roughly 20k for the chain. Services are the same, roughly, only you need to do 2 of them - annual and distance. Insurance is more expensive, unless you have had your license for a while already. The gear is expensive, those need replacing as well.

Sure, buy it to save time if you commute a lot, sure buy it to feel freedom. Don't fool yourself thinking you're gonna save anything. And beyond that, even if you save some fuel on your commute, you'll burn it going on a trip over the weekend. And don't kid yourself and think that you won't, you will.

@Archer @SauRoNZA @Scary_Turtle @Hamster @SirFooK'nG @Steamy Tom - calling in some users from the motorcycle thread to give their experiences.

If you want to save money by getting a motorcycle then get a cheap 125/250 like a Honda XR.

Great for zipping through traffic in town. If you're going to do highways, what @GhostSixFour said.