Results 1 to 3 of 3

Thread: Save the economy by saving fuel

  1. #1
    just me duncan drennan's Avatar
    Join Date
    Jun 2006
    Location
    Cape Town
    Posts
    2,642
    Thanks
    119
    Thanked 94 Times in 77 Posts

    Save the economy by saving fuel

    Have you ever wondered how you can have an impact on the economy? Try saving fuel while driving....well at least that is a suggestion from one tax commentator.

    We all know that by reducing our speed just slightly, we can save significant amounts of fuel. The average petrol-engine car uses 8-8½ litres per 100 kilometres on the open road at a steady 120 kilometres per hour. Since most motorists are probably doing around 140, they will be using around 12-13 litres - about 50% more!

    --

    Assuming that you travel 20 000 kilometres each year, and your car's fuel consumption averages ten litres per 100 kilometres, you are contributing around R2 500 per year in tax. Reduce your fuel consumption by 10%, and that's R250 less in tax.

    Big deal, you may say. So let's put this in perspective then - look at the total fuel price. At R7,13 per litre, your annual fuel bill will probably come to around R14 400, or R1 200 per month. Most of us could do with an extra R120 in our pockets each month - especially as in most cases, we pay for our fuel with after-tax money.

    --

    So what does this have to do with us motorists? Well, since prices are generally driven by supply and demand, lower fuel consumption means less demand for imported crude oil, which benefits not only the balance of payments but also the exchange rate (since less dollars will need to be purchased).

    Full story on Moneyweb
    The point being? If we all work in a consistent direction the small changes do matter. IF we all work in a consistent direction that is.
    [SIGPIC]Engineer Simplicity[/SIGPIC]
    Turn ideas into products | The Art of Engineering blog

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    Absolutely amazing the difference with that extra 20km per hour - and it gets worse at even higher speeds - especially for vehicles that aren't that aerodynamic to start with.

    The average sedan might not have that big a difference, but with less streamlined taxis and oh-so-popular SUVs that get through the air more by brute force than guile, the effect must be massive.

    As for the effect of a 10% drop-off in demand - well it should lead to more than a 10% drop-off in price I'd think. But then the price drops, demand goes up and....

    /My head starts to spin.

  3. #3
    Platinum Member SilverNodashi's Avatar
    Join Date
    May 2007
    Location
    Johannesburg, South Africa
    Posts
    1,197
    Thanks
    12
    Thanked 188 Times in 136 Posts
    Quote Originally Posted by Dave A View Post
    Absolutely amazing the difference with that extra 20km per hour - and it gets worse at even higher speeds - especially for vehicles that aren't that aerodynamic to start with.

    The average sedan might not have that big a difference, but with less streamlined taxis and oh-so-popular SUVs that get through the air more by brute force than guile, the effect must be massive.
    I'm going to say this......

    Those who can afford a R300,000.00 + car, just don't care. They can afford the petrol prices, and it doesn't affect them as much as the rest of the country

Similar Threads

  1. Credit boom may bode well for SA economy
    By Dave A in forum Business Finance Forum
    Replies: 0
    Last Post: 09-Feb-07, 08:08 AM
  2. A time to save.
    By Dave A in forum General Business Forum
    Replies: 0
    Last Post: 02-Oct-06, 06:47 AM

Tags for this Thread

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •