Bottom line - they've got used to the extra money. There is always this ratchet effect when it comes to price fluctuations
Bottom line - they've got used to the extra money. There is always this ratchet effect when it comes to price fluctuations
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Woot!The retail price of petrol will decrease by between R1,34 and R1,37 a litre -- depending on the grade -- on Wednesday January 7, the Department of Minerals and Energy announced on Friday.
This follows a drop of R1,61 a litre last month and 45 cents the previous month.
full story from M&G here
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One problem still remains - petrol & diesel use has a bad affect on our environment.
What happened to that TATA compressed air minivan that was supposed to be released in south africa in 2008??
The man who smiles when things go wrong has thought of someone to blame it on. - Robert Bloch
I like the reference to "ratchet effect". Whats done is done! Speaking to our domestic and guys at work, the taxis etc will not drop the rates (even though they are the first to put up when it goes up). Retailers probably won't drop either, more profit for a change.. Maybe the powers that be will be a bit forceful though, being an election year all n' all!
Garth
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Everyone who negotiated pay raises way above the expected CPIX levels helped to entrench inflation. Also, you have to consider that there is a delay time between lower fuel prices impacting on food prices - crops were planted while diesel prices where high, and that cost will carry through the season until the next harvest.
The art is to claim lag just long enough for everyone to forget that the price should have gone backwards a bit
It's all just a shift in relative value anyway and who wants to go backwards?
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Here's a classic example of the ratchet effect.
Although in fairness, who knows how long current fuel price levels will last anyway.EASTERN and Southern Cape motorists and taxi and bus commuters, who hope they may benefit from last night‘s fuel price drop – down a dramatic R4 a litre compared with last July – will be sorely disappointed as they are unlikely to feel any relief in their pockets.
Food shops, airlines, bus and taxi operators told The Herald yesterday that the petrol price cut – down R1,35/l at midnight last night – would have no immediate effect for motorists or public transport users.
Cosatu said this week it would consider putting pressure on taxi associations to review their fares. “If the price of fuel goes down, taxi fares should go down as well,” said spokesman Patrick Craven.
Last year, taxi associations joined hands with Cosatu in calling on the government to do something about the high fuel price which had risen to more than R10/l. But SA Taxi Council secretary general Philip Taaibosch was singing a different tune this week. “Our fare increases have never been motivated by petrol price increases,” he said.
Taaibosch would not be drawn to comment on what the R4/l decrease in the petrol price since July last year meant to taxi operators.
Meanwhile, SA Consumer Union (Sancu) chairman Lillibeth Moolman said: “It is unreasonable of the taxi operators. There is no reason why they cannot reduce fares for commuters. People who use their own cars to work will benefit and taxi commuters should too.”
full story from The Herald Online here
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True D, I don't think this reduction in fuel price matches the catastrophic events occuring globally(The "lag" you speak of is evident - reactionery, developing eco's are always behind) and oil is now back over the $50 a barrel, blaming Ukraine non-compliance and WWIII (Isreal and Hammas)... good prices shouldn't last long, then back up on the $140 a barrel...or worse...no oil....
Just loving it!On 7 January 2009, the price of petrol dropped by 134c – 137c a litre, depending on the grade. This comes on top of a 161c cut in December and a 45c cut in November 2008. All in all, to fill up a 60 litre tank will cost about R200 less in January 2009 than it did in early November 2008. (The Times, The Wheel Deal, 3 January 2009)
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