Fuel Price

I wish my maths was better ......................the Rand has weakened by 60% but the oil price has reduced by over 500% and the cost goes up!

rob faux wrote: I wish my maths was better ......................the Rand has weakened by 60% but the oil price has reduced by over 500% and the cost goes up!

Exactly. It seems like there are some much add-ons riding on the fuel price that lowering it will result in a major loss of revenue.
A weak rand also works well for tourism and foreign investments?

Is Africanomics ...wot can one say !!

Don't think that you can get a 500% reduction in anything...max decrease will be from highest point to zero which would be a 100% reduction...

I do understand the point though...just that the Maths does not seem to be correct...

Found this link that may prove helpful...

www.energy.gov.za/files/esources/petrole...rol-Price-Margin.pdf

The oil price and exchange rates are part of the variable cost element and any change in these only impact on the Basic Fuel Price (the BFP in link)...the other elements (largely fixed) comprise of taxes and charges and etc...

The retailer & supplier take maybe 25%, Gov take the other 75%..... with this weighting the oil price needs to drop to $10 a barrel for us to get a drop in retail price....

Tigershark wrote: The retailer & supplier take maybe 25%, Gov take the other 75%..... with this weighting the oil price needs to drop to $10 a barrel for us to get a drop in retail price....

The Table TNaicker provides or the fuel retailers websites gives you the exact breakdown of where every cent goes for every litre. The government does not take 75%.

BTW just thinking, this is how I will work it out.

If the rand depreciated from let say R10 to 16 = 60% depreciated
If the price per barrel depreciated from $60 to $30 = 50% depreciated

a barrel cost at that time say $60 (November 2015) = $60 * R10 = R600
a barrel cost now = $30 * R17 = R510

97 Octane
BASIC FUEL PRICE 556.970
CONTROLLED INDUSTRY MARGIN 33.200
SERVICE DIFFERENTIAL 32.200
DUTIES/LEVIES/SUBSIDY
-Customs Duty 4.000
- Equalisation Fund levy 0.000
- Incr. Inland Transport Recovery Levy 0.000
- Slate Levy 0.000
- Petroleum Products Levy 0.330
- Tracer Dye Levy 0.000
- RAF (formerly MMF Levy) 154.000
- NRSC Levy 0.000
- Fuel Levy 255.000
- Total 413.330
Zone 01A Delivery Diff'l 2.600
Whole cent rounding to Slate 0.400
ZONE 01A LIST PRICE 1038.300

Dealer Margin 161.700
Whole cent rounding to Dealer 0.000
ZONE 01A PUMP PRICE 1200.000

Basic List Price (Excl. 01A diff) 1035.700

DSML 0.000
Railage to Reef 35.300
REEF LIST PRICE 1071.000
Dealer Margin 161.700
Whole cent rounding to Dealer 0.300
REEF PUMP PRICE 1233.000

Also our price per litre is much more cheaper than other developed countries. It is going to be a long road ahead before South Africa can show growth again.

data.worldbank.org/indicator/EP.PMP.SGAS.CD

Is SA a developed country with the infrastructure to match?

Tigershark wrote: Is SA a developed country with the infrastructure to match?

Exactly, a country with inferior infrastructure, still has reasonable prices. Look at Brazil, India, China, our prices are almost the same.

The problem, I think lies with the government take out, how do they manage the income to uplift the Transport System and also use the surplus for the rest of South Africa.

TNaicker wrote: Don't think that you can get a 500% reduction in anything...max decrease will be from highest point to zero which would be a 100% reduction...

I do understand the point though...just that the Maths does not seem to be correct...

Sorry ..................the oil price was in fairly recent times, over 500% higher :woohoo: ...........forgot we had accountants on the site (and I did apologise for my maths )