LettersOpinion

Tired of being ripped off at the pumps

It’s difficult to understand the formulation of the fuel price and I challenge the government to make their calculations public. Even with the depreciation of the Rand the fuel price should be about R5 a litre. Could this be a way of bleeding consumers to the bone to fund the failing E-Toll system? If all …

It’s difficult to understand the formulation of the fuel price and I challenge the government to make their calculations public. Even with the depreciation of the Rand the fuel price should be about R5 a litre.
Could this be a way of bleeding consumers to the bone to fund the failing E-Toll system? If all the economic variables are added to the equation the fuel price seems to be blatantly skewed. We must consider the following:
In 2004 the price of Brent crude oil was $30.44 a barrel and the exchange rate about R6.73 to a dollar. Fuel was about R3.69 a litre.
Currently Brent crude is about $33 a barrel and the rand/dollar exchange rate around R17 a dollar, an increase of around R11, and the current fuel price about R12 a litre, an increase of R8.30 a litre. This equates to a barrel of oil increasing 80% while the fuel price mysteriously increased 300% . How is this possible?
What would the scenario be if the price increases to $60 a barrel – will the price increase to R22 a litre? What would the repercussions be if Brent crude reaches the price of a year ago, in the region of $120 to $130 a barrel? However at these prices motorists were paying between R12 and R13.50 a litre. Hence it can be postulated that we as consumers are being drastically overcharged.
This impacts directly onto our cost of living. We are tired of being ripped off.
MICHELLE THORNE
Tongaat


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