Gas Price

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  • Faan
    Bronze Member

    • Jan 2007
    • 123

    #1

    [Question] Gas Price

    Something which has been bothering me for a while now is the price of gas.

    The price of petrol I paid a week ago is R7,67 per litre and the promise is for it to come down further from beginning August. The price of gas I bought this morning works out to something like R18,43 per kg (which is probably equivalent to a litre).

    The petrol price is regulated, but the gas price not. A dealer therefor base his price on what the competitors charge.

    Lots of our petrol comes from oil imports, but I think lots of gas comes from Mossel Bay.

    Is there anyone who could perhaps give us some insight into the difference in price?
    __________________
    Faan Kruger
    +27 82 853 7879
    krugerfaan@gmail.com
  • tec0
    Diamond Member

    • Jun 2009
    • 4624

    #2
    First of Gas is a victim of a free-market system. Basically the cost-price of gas comes down to transport of gas, storage of gas and scarcity of gas supplies. These factors allow for variation of cost and let us not forget gas is not like petrol at all.

    See government needs to control petrol cost simply because our livelihood depends on petrol. You cannot go to work without your car, bus or taxi. So to prevent abuse government took control of the petrol cost as a preventative measure ONLY.

    Other than that I cannot justify the cost of Gas at all but one can understand why petrol prices needs to be controlled.
    peace is a state of mind
    Disclaimer: everything written by me can be considered as fictional.

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