Petrol price increase

[Chatmaster]

That decrease seems pretty low though, I actually expected it to be way lower, but I am definitely not complaining!

[IanF]

That decrease seems pretty low though, I actually expected it to be way lower, but I am definitely not complaining!

Chatmaster
Here the link to CEF It gives the breakdown. 151 cents due to oil price and minus 105 due to exchange rate. So talk up the Rand and we can another R1 off the price.

[Dave A]

It's a bit of a mixed blessing. The crisis that helped weaken the Rand also brought down the oil price quite dramatically.

At least we were nett winners this time.

[Dave A]

Enjoy lower fuel prices while they last.

Ministers for the Organisation of the Petroleum Exporting Countries (Opec) on Wednesday agreed to remove a record 2,2-million barrels per day (bpd) from oil markets in a race to balance supply with the world's rapidly crumbling demand for fuel.

The 12 members of Opec were also aiming to build a floor under prices that have dropped more than $100 from a July peak above $147 a barrel.

The cut comes on top of existing reductions of two million bpd agreed by Opec at its last two meetings.

Oil showed little reaction to the deal reached after four hours of talks, with prices trading just above $43 a barrel.

Saudi Arabia, the world's biggest oil exporter, has led by example -- reducing supplies to customers even before a cut has been agreed to help push prices back towards the $75 level Saudi King Abdullah has identified as "fair".
full story from M&G here

Now I vaguely recall oil running at about $30 a barrel before the price run up really started. I know that was a few years ago, but that "reasonable goal" probably equates to about a 20% per annum increase.

[duncan drennan]

Now I vaguely recall oil running at about $30 a barrel before the price run up really started. I know that was a few years ago, but that "reasonable goal" probably equates to about a 20% per annum increase.

I vaguely recall OPEC mentioning something like $40 as being a realistic price per barrel when it was pushing through $100. Apparently speculation was driving prices up. Unless my memory fails me

[Dave A]

Bottom line - they've got used to the extra money. There is always this ratchet effect when it comes to price fluctuations

[Dave A]

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

Woot!

[Loman]

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??

[garthu]

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!

[duncan drennan]

I like the reference to "ratchet effect".

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.

[Dave A]

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?

[Dave A]

Here's a classic example of the ratchet effect.

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

Although in fairness, who knows how long current fuel price levels will last anyway.

[Frankincense]

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....

[Dave A]

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)

Just loving it!