South Africa's petrol price could easily be 25% less - expert

GhostSixFour

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I could also be sun tanning on an exotic island with my feet in the pool water whilst having a pina colada served by super models. I'm not though, so who cares.
 

xtm

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Could easily means?
What about could be paying 25/l in near future
 

rietrot

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The problem is the fuel levie goes into the general fiscus, which is looted first and then what's left over is used to pay social grants.

We cannot reduce that.
 

krycor

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RAF… good luck forcing 3rd party. Didn’t work out last time we had this. How much will the bill be to have regular road blocks on all major routes in terms of transit time and additional labour? Where will the shortfall for labour come from? Don’t get me wrong.. I like the idea as if you paying for insurance you have a reduction.. but policing will need to happen else guess who has to fork out for taxi.. yip tax man more directly.

Wrt retail price regulation.. not sure. To be fair the swing in diesel price I’ve seen up to R1.50/l which I found insane. (Don’t fill up in a perceived wealthy neighborhood). It’s usually lesser price swings though. Ok competition he claims but have some doubts.. expect regular CC investigation on pricing which I guess bumps cost.
 

krycor

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The problem is the fuel levie goes into the general fiscus, which is looted first and then what's left over is used to pay social grants.

We cannot reduce that.

Reducing the general tax on fuel is risky without a lot of austerity, gov labour reduction, privatization of SOEs etc. basically reduce the gov and hope the free market doesn’t screw you over .. something that history says ends badly in Africa.

They should have reduce cost, corruption, workforce and esoteric SOEs but we all know how that’s gone.. we in what, year 3 going 4 post Zuma.

Unless they do some or all of the above, dropping fuel taxes will have rating agencies dropping ratings even faster.
 

mypetcow

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government could lower the price by scrapping the Road Accident Fund (RAF)
I guess you could but then who would pay for when the person whose car isn't insured and who also doesn't have much income crashes into you and damages your car (or many) or injures a pedestrian?
I can only see this happening if as in many other countries government makes 3rd party insurance for all vehicles mandatory....until then I don't see it happening.
 

rietrot

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Reducing the general tax on fuel is risky without a lot of austerity, gov labour reduction, privatization of SOEs etc. basically reduce the gov and hope the free market doesn’t screw you over .. something that history says ends badly in Africa.

They should have reduce cost, corruption, workforce and esoteric SOEs but we all know how that’s gone.. we in what, year 3 going 4 post Zuma.

Unless they do some or all of the above, dropping fuel taxes will have rating agencies dropping ratings even faster.
Whut? Governments end badly in Africa. Nothing wrong with the free market.
 
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