Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
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We can see the effects of the weaker Rand as well as taxes in the recent substantial increase we have seen in the fuel price. Unleaded 95 petrol in Gauteng is now R15,79, although most people will no doubt be using, as I do, the 93 petrol at R15,54. The problem is, despite the substantial increase, with the Rand’s current slide they are still looking at an under-recovery for June of 54c. Obviously, if the Rand improves, this figure can change dramatically before the end of the month, but if the next increase had to be determined now, the price would need to have another 54c added onto it to go to more than R16,00 a litre!
This again illustrates the absolute importance, despite the fact that politicians often make all sorts of silly comments about markets, of sorting out policies, getting South Africa growing again and dealing with the issue of nationalisation of land and property sensibly.
Every time politicians rattle the cage with this type of conversation it leads to the Rand weakening, the Rand weakening leads to higher petrol prices and higher petrol prices lead to higher food prices because all of those basics have to be delivered to the shops on our roads, etc. Ultimately that also feeds through to inflation. The sooner the politicians can stop talking nonsense, the better for all of us who actually pay their salaries!
Posted by Michael de Broglio on Thursday 14-Jun-18
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Comments
Joyce said:
on Friday 27-Jul-18 04:47 PM
I think our politicians do not care about people of South Africa and think that if they do, they would not make comments which will cost people of South Africa.
Suvashnee said:
on Friday 06-Jul-18 08:56 AM
Due to all the increases it affects every single person including the taxi / bus owners or drivers, which in turn affects our transportation system and that becomes a major problem as strikes occurs. I understand that people try to get their views out there but it becomes to dangerous for others.
Liz said:
on Thursday 05-Jul-18 08:59 AM
Politicians need to start seriously thinking before they speak, something they seem to never do. The petrol hike is becoming ridiculous and is certainly not sustainable.
Lucretia said:
on Monday 02-Jul-18 09:21 AM
I was shocked this weekend when I filled my tank with petrol. My bill came to R590.00 which does not sound like much but when you sitting with a 35ltr tank, it suddenly hits home as to how much the petrol prices have increased. It is ridiculous and scary at the same time. And now with all the increases in July, i.e. more petrol increases, increases in lights, water, rates and taxes, is the book you spoke of in a previous blog, "Factfullness" statistics correct when it says, now is the best time to be alive. I feel I am being squeezed to death by my tight belt which will now have to be tightened even more.
Helen said:
on Monday 02-Jul-18 09:14 AM
It is very sad to see how actually our politicians does not care about their people, and things they do and talk about does effect our economy dramatically. Where we are all heading to?
Henrietta said:
on Monday 02-Jul-18 09:04 AM
It amaze me that the politicians don't know these things and we are ultimately paying the price. I think the petrol prices are ridiculous and can still remember a time when we use to out R50 in and drove to PTA and back, you can't even use the Gautrain for that amount today and it sad.
Sinead said:
on Monday 25-Jun-18 10:07 AM
I cannot believe the petrol prices these last few months. It's the most I have ever seen them! When the petrol increases, so do flights, and so does food (transportation costs)
The cost of living in general has increased and is really getting ridiculous if you ask me. I really do hope things get better for us.
Ashleigh said:
on Friday 22-Jun-18 09:33 AM
Petrol Prices are ridiculous. I think I read somewhere that we pay the most for fuel then any other country. These politicians don't have any money worries hence they will just continue with their talking nonsense.
Brenda Du Toit said:
on Friday 22-Jun-18 07:53 AM
Everything in this country is very expensive .The petrol Pricing is getting out of hand now and there is noting we can do. Something will have to be done to this Country.
Daniella said:
on Wednesday 20-Jun-18 08:45 AM
My pockets can definitely feel the difference. The weakening of the rand really does affect us in more ways than one.
Tamaryn said:
on Tuesday 19-Jun-18 04:07 PM
If only our politicians could be more focused on what hurts a country as a whole as opposed to what pleases them individually.
Nicolle said:
on Tuesday 19-Jun-18 10:06 AM
Whenever I am confronted with all of the shenanigans that our politicians get up to, resulting in the strengthening / weakening Rand, I immediately think about the "Social Contract Theory" - a philosophy as old as time, indicating that a person's moral and / or political obligations are dependent upon a "contract" among them to form the society in which they live. It's a curious theory, this "Social Contract", because from it one assumes that if you wish to form part of the society, you either orally or tacitly agree to follow the rules that regulate this society, right?
For Thomas Hobbes, there was the necessity for an absolute authority, in the form of a Sovereign State. For without it there would be utter brutality of the State of Nature (aka, the state of war).
Thinking about it logically, in South Africa, we have a representative democracy and this is characterised by the fact that the citizens of a state elect the representatives of their choice, and these representatives express the will of the people.
.. at the moment, with the current political climate and uncertainty, our social contract is starting to feel like a "state of war".
Michelle said:
on Monday 18-Jun-18 03:48 PM
I don't think we realize how serious it is that some people wont be able to afford petrol one of these days. More and more people will walk to their destinations or make use of public transport.
Patrick said:
on Monday 18-Jun-18 02:35 PM
Unfortunately politics is one carea were you don't need qualification if it was possible, qualifications should be made compulsory so we can have politicians who understands the impact of their words .The opening of Political School by Lindiwe Mazibuko is a move in the right direction and I think it should be made compulsory .
Megan said:
on Monday 18-Jun-18 08:54 AM
I agree that a lot of what politicians say affects our rand, if Parliament ran much smoother perhaps the increase in the cost of everything would be more of a steady increase or decrease rather than an extreme increase we don't have time to comprehend. The cost of living really is insane at this point.
Michelle D said:
on Friday 15-Jun-18 04:07 PM
South Africa has always been a relatively cheaper place to live in comparison to the rest of the world which is important in light of our huge percentage of the population living below the bread line. With the Rand decreasing in value it makes everyone's lives more difficult, it forces us to cut down. But for those living in poverty or those just managing to scrape through, this increased cost of living has much worse consequences.
courtney said:
on Friday 15-Jun-18 12:29 PM
Myself and Cornelie spoke about this the other day, we both said petrol is so expensive we need scooters to come to work because its low on petrol.
Thabitha said:
on Friday 15-Jun-18 09:22 AM
Petrol pricing is a nightmare everything is so expensive we are going to eat dogs food
Alexis said:
on Thursday 14-Jun-18 04:41 PM
It is quite a sad affair the amount the fuel price has gone up and seems to be going up all the time. And as you say, everything else goes up - and it is noticed ... I agree with Jess in the regard of working on it and possibly it will get better in time
Shristi said:
on Thursday 14-Jun-18 04:31 PM
The fuel price is just insane. What is even more astounding is that the petrol price is definitely going to go up again. I think that politicians should work on implementing ways/ideas that can help lead to a more sustainable economy.
Melissa said:
on Thursday 14-Jun-18 03:08 PM
Everything in this country is becoming so expensive these days, in a few years we won't be able to live or get to work anymore.
Jadine Richards said:
on Thursday 14-Jun-18 02:02 PM
Whenever the topic of the fuel price comes up it causes me major anxiety. It is completely mind-blowing what it is currently sitting at. There needs to be some serious work done with regards to SA's current economic situation because it is not sustainable.
Jessica said:
on Thursday 14-Jun-18 11:44 AM
The largest determinant of the rising fuel price is the price of crude oil, the last six months, the price of oil dropped from $110 to its current price of just over $60 a barrel. Of course, Rand depreciation is directly associated as the trade of crude oil is in Dollars.
Politicians should direct their attention to strengthening the Rand and you will be amazed at the ripple effect that it will have!
Angelique Jurgens said:
on Thursday 14-Jun-18 09:36 AM
I would like to know the difference between 93 and 95 because my mother always told me to use 95 but now with this increase I sit wondering why 95. The cost of living is just ridiculous. Even when just buying groceries I feel it. I might just get a bicycle to get to work - kidding!
Fikile said:
on Thursday 14-Jun-18 09:10 AM
If the petrol keeps going up which means the transport will be going up as well and most people wont be able to use the taxi's and bus's and using a train is not easy simply because you never know what time it will get you to work worse home. i wont say much about food because already food is expensive and most of us can't afford to buy most of the things that we were use to buying
nina said:
on Thursday 14-Jun-18 08:23 AM
These price increases are very worrying, especially the petrol price that is at a all time high. What is more worrying is the fact that the petrol price will be increasing even more. Something will have to be done to strengthen the rand again, and that will have to happen very soon.
Bianca N said:
on Thursday 14-Jun-18 08:16 AM
It's becoming ridiculously expensive just to get by in this country. I wish our so called "leaders" can for once think about how they are damaging the country and affecting us as people. The petrol price alone is making it so hard just to get to work everyday.
brumilde said:
on Thursday 14-Jun-18 07:57 AM
And the little people at the bottom will just have to keep paying more for thing.The cost of living goes up every time a SA politician opens their mouth. And this will lead to more poverty and more crime. Lets hope petrol goes down...
david said:
on Thursday 14-Jun-18 07:26 AM
pretty soon i won't be able to afford to drive to work every day. i'll have to bring a sleeping bag, and camp at the office from monday morning 'till friday afternoon.
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
