Hefty fuel price increases cannot be justified

Consider the sale of ‘surplus’ oil by South Africa, writes Worried Citizen from Edenvale.

For goodness sake, about three years ago the motorist paid about R14.60 at the pump when the international price of oil was about $118 per barrel. At the time, the price dropped consistently over a short period of time to $28 per barrel.

We do not need a maths professor or a scientist to work out that the price of oil presently sitting at just above 50% of what it was three years ago, the motorist should not be paying more than slightly more than half of the price that was being charged. This should not be more than R9 per litre.

Prices were never adjusted accordingly on the way down but now, every time the international oil prices go back up, the department of energy – ultimately the government – announces regular and heavy increases.

If it carries on, we will be paying about R68/R75 per litre should the price of oil ever reach the $118/ barrel again, maybe more.

Consider the selling of the SA oil surplus which took place over a period of about two years? I believe it was done at about an equivalent of $49 per barrel, but the surplus had been paid by the SA motorists. This means that for the same period while the surplus was being sold, any internal price increase of petrol could not really be justified.

I remain baffled by the fact that the situation has not been addressed by anyone, not to mention our economists. This, after all, has affected our daily cost of living and for that, it should be to Minister Jeff Radebe to look at the overall situation.

It also seems to also be affecting the natural running of the South African essential facilities, where fuel is required like power stations, air and rail services.