Why are people attacking Sasol?

[Syndyre]

Its not about going bankrupt - its more about the fact that it would no longer be viable to maintain a presence in the country anymore. We would have one supplier and they would have to become a parastatal to ensure the consumer isnt raped for all he is worth once the competition was eliminated.

Unless I'm missing something how is the petrol market any different from any other market? The only difference I can see is that Sasol operates on a completely different cost basis compared to other oil companies, is that what you're getting at?

 

[DJ...]

Unless I'm missing something how is the petrol market any different from any other market? The only difference I can see is that Sasol operates on a completely different cost basis compared to other oil companies, is that what you're getting at?

Yes, pretty much. Sasol without the pricing regulations is in a position to create a monopoly at any given point, so the regulations protect the consumer from this, and in turn benefit Sasol as long as the price of oil rises. As soon as the global oil price drops, they start losing again.

 

[Syndyre]

Yes, pretty much. Sasol without the pricing regulations is in a position to create a monopoly at any given point, so the regulations protect the consumer from this, and in turn benefit Sasol as long as the price of oil rises. As soon as the global oil price drops, they start losing again.

True, you'd think there'd be a less restrictive way to regulate it while achieving the same goal though.