Huge Fuel Price drop in December?
The AA advised today that on the back of declining oil prices and firming in the Rand / Dollar exchange rate, motorists could expect a HUGE fuel price drop in December.
HUGE- R1,54 per litre on petrol and 92c / litre on Diesel.
Well, that would bring some very welcome relief to us all!
My question here is this.
There has been HUGE public outcry in recent weeks over the fuel price.
Many groups have been spouting about what they will do to protest the increases we have had to endure, plus the SA FUEL WAR was launched in early October.
One has to wonder whether this strategic fuel price decrease has another purpose.
E-Tolls and the Fuel Levy.
Of recent times the ETOLL issue has once again reared it’s head with SANRAL looking to other agencies like SARS for some heavy handed intervention.
OUTA has vowed to fight all actions and summonses issued for the collection of unpaid tolls.
Now, what does this have to do with the fuel price drop?
The fuel price drops by R1,54 per litre on petrol and 92c/litre on diesel.
(The fuel levy hasn’t dropped.Remember this.)
Motorists breathe a little easier..
Maybe we even get another little fuel price cut in January..
But remember that the FUEL LEVY still remains a PRIME target for government to generate revenue whether it’s to fund SANRAL,the RAF or new cars!
My point is, it’s the frog in the hot water syndrome all over again. We, the motorists are the frogs. They just turn the heat up slowly and we boil to death.
Fuel price drops by R1,54/litre.
Come Feb, the price goes up again by let’s say 20c/litre but 10c of that is FUEL LEVY and the other 10c is based on the oil price / Rand Dollar.
Now the fuel levy is around R5,40 /litre.
Selling around 1,5 billion litres of fuel per month, a 10c/ litre increase on the fuel levy = R150 million X 12 = R1,8 billion.
But, in our mind, we are still “IN CREDIT” for R1,44 ( R1,54 -10c)…
This could be a slow and steady, yet incremental increase on the Fuel Levy over the next 12 months so we again pay for the corruption but we aren’t complaining…
Makes you think, doesn’t it?