Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
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I am not surprised to see what has happened with the petrol price – after all, we have seen a weak economic policy, CCMA and other labour policies are all going to lead to a stagnant economy and a weakening Rand. We will ultimately pay for the “benefits” that many people say they want, sometimes indirectly. Just as all of those who think that they have avoided paying e-tolls all those years will simply see that we will all have to pay for it out of our taxes now anyway.
In any event, a number of banks have given their forecast as to the Dollar and the petrol price. RMB says the Dollar will stabilise at R14,20 by the year-end whereas Nedbank says that will remain above R14,00 to the Dollar. Nedbank is predicting that petrol prices will touch R17,50 a litre by the end of the year and by 2019, “We see petrol prices rising to at least R18,90 per litre ..”. The use of the word “at least” is very frightening. The sanctions by the US on Iran is obviously pushing up the oil price and it is quite possible that that would go up even higher and of course we have to hope that during the same timeframe the Rand stabilises or heads back down, but there is no long-term evidence of any stability with the Rand. It has been a slow but steady slide ever since the Rand was R2 to the Dollar and more importantly, it is only about 5 or 6 years ago that the Rand touched R6,70, R7,00 and hovered around R8 to the Dollar for a number of years. Every time it goes up now we always say that is improvement, and yes it is, but it gets nowhere close to where it was 5 or 6 years ago and bouncing back from R15 to R14 is not really something to celebrate if as recently as late 2014 it was below R10 to the Dollar. Even at R14 it is 40% down over about 4 years, and I accept that 40% down is better than 50% down, but when we go from R15 to R14 is not some amazing win!
Posted by Michael de Broglio on Thursday 08-Nov-18
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Comments
Zindy said:
on Tuesday 11-Dec-18 07:58 AM
Petrol Prices are ridiculous, When petrol goes up seems everything else does to. I understand for transport costs ect to get the items delivered that's wht everything goes up but when petrol comes does nothing else does. It will soon rise after the holidays so I guess enjoy the extra few litres.
Nicolle said:
on Tuesday 11-Dec-18 07:52 AM
I am relieved that the price of petrol has dropped just before most of the country goes on holiday, travelling long distances.
Fikile said:
on Monday 10-Dec-18 05:12 PM
We are mostly happy that the petrol price has went down but the main question is for how long will it be like that because even after all of that we are still not yet happy about how much of the amount was taken on the petrol. We just have to wait and see how long is it going to be like that.
Tersia said:
on Monday 10-Dec-18 11:28 AM
If we could just have better public transport, but we will never have the luxury of something like that because our country is not safe. Prices of everything will obviously keep on rising until all the problems in our land are sorted out, like the corruption ect. but I don't see that ever happening.
Jolene said:
on Monday 10-Dec-18 09:39 AM
We will at least get a little break over December, the petrol price came down with about R1.84c per liter last week. I just hope it can stay there for some time.
Sinead said:
on Monday 10-Dec-18 09:14 AM
It doesn't matter that they decreased the price for one month as a "Christmas bonus," they'll just increase it by like a million rand next month. I am not excited about that. At all! I just hope this helps the country
Henrietta said:
on Monday 10-Dec-18 08:48 AM
It is scary thinking year ago how much the Rand was worth years ago compared to now and it is now just getting worse. I remember a few years ago and we use to put R50 petrol and went all the way to PTA, that's not the case now.
Shristi said:
on Sunday 02-Dec-18 06:33 PM
How does one live a sustainable lifestyle with the constant fluctuation of our economy? The constant increasing of the petrol price is really scary.
Prishani said:
on Wednesday 28-Nov-18 04:32 PM
The constant fluctuation and uncertainty of the petrol price in our country is concerning. This is all the more reason for Government to help the country by working on our public transport systems, like extending the Gautrain routes and even making existing transport safer for commuters, like our busses and trains!
Natasha said:
on Tuesday 27-Nov-18 09:04 AM
It is scary to see how much petrol has gone up I remember the days when I was in school and my mom had to put petrol in and it was like R2.00 it is ridiculous. One of these days we are going to ride horses to work. or have the cars that charges
Ashleigh said:
on Thursday 22-Nov-18 11:10 AM
I have heard Petrol Price is coming down in December. The month when we do actually have a little bit extra cash to spend on Petrol. I worry about what is planned for January when we don't have money and is a struggling month.
Jadine Esterhuizen said:
on Thursday 22-Nov-18 10:12 AM
Every every every fuel price is short lived. It will last for maybe a month just to sky rocket to much more then it was previously. It is quite expensive but they hit where it hurts the most and that is your budget and bank account.
Helen said:
on Thursday 22-Nov-18 08:23 AM
Yes, it is very hard to be positive, with so many changes happening in South Africa today. Fuel price change, food price increase, increase of criminal activities, abuse and bulling of children at schools!
It must stop and it is time of change in this beautiful country!
Alexis said:
on Wednesday 21-Nov-18 04:29 PM
It is very tiring the amount that is paid, because with increasing petrol, everything else increases as well...becomes very hard for one to live in this day and age
Michelle D said:
on Tuesday 20-Nov-18 08:24 AM
The ever increasing petrol price is extremely scary for South Africans. The moment petrol goes up, the price of food increases which effects everyone, not only those people with cars. The average South African barely makes enough to survive, I'm not sure how everyone will cope if the price of everything carries on increasing like this.
courtney said:
on Monday 19-Nov-18 04:53 PM
When I hear 'petrol prices' I feel negative! It's so bad that the price of petrol got so high!
Liz said:
on Friday 16-Nov-18 02:06 PM
The price of petrol has become astronomical and it is very difficult to keep up. I am glad that the prices will be dropping in December, however, I think the relief we will experience will be short lived and prices will soon start to rise again.
Victoria said:
on Thursday 15-Nov-18 03:18 PM
The petrol price is said to go down in December but for how long will it go down before they increase the price to a ridiculous price again. Something drastically needs to change, we all can't keep up with these increases.
Joyce said:
on Wednesday 14-Nov-18 04:57 PM
Petrol price never stable, goes up and down. I think China will never suffer and experience petrol price rise in their country since they now changed to electric cars. I think Nedbank predictions might be correct
Joyce said:
on Wednesday 14-Nov-18 04:54 PM
Petrol price never stable, goes up and down. I think China will never suffer and experience petrol rise in their country since they now changed to electric cars. I think Nedbank predictions might be correct
Thabitha said:
on Tuesday 13-Nov-18 04:11 PM
Petrol prices it's a nightmare it doesn't matter whether you use your own car or use public transport, the cost of living is too high and it is scary to see that even next year we might see the price going up.
Dune said:
on Tuesday 13-Nov-18 03:52 PM
It is crazy to see how the petrol price has escalated in such a short period. I have heard numerous people say that it might go as high as R20 by early next year!
Melissa said:
on Tuesday 13-Nov-18 03:11 PM
We won't be able to drive cars or afford them anymore because of the petrol prices. How will we be able to live??? Our whole salary will be going towards petrol one of these days...
Angelique said:
on Tuesday 13-Nov-18 11:45 AM
I am not sure how true predictions are but my only hope is that it remains stable rather than increase. I get nervous when I hear of a decrease, because I feel like its the government's ploy to prepare us for an increase. Then on top of it e-tolls, we pretty much should be walking everywhere.
candice said:
on Tuesday 13-Nov-18 11:20 AM
Petrol Prices are becoming ridiculous , Everything is going up and we are forced to pay those prices as we all need to get to work , shops ect . I hope in a few years time things will change
Daniella said:
on Tuesday 13-Nov-18 10:56 AM
The petrol prices are absolutely ridiculous! I cannot imagine the thought process behind this because people are going to find it way harder to make it through the day to day lives as the cost of living is also going to go up!
Sarah said:
on Tuesday 13-Nov-18 06:50 AM
Petrol is really becoming ridiculous and when petrol keeps going up everything else goes up as well. Something needs to change urgently .
Mathilda Du Preez said:
on Monday 12-Nov-18 11:36 AM
The increase of petrol is getting out of hand and something has to change.
It is frightening to see everything just increasing and we are getting no relief.
Government spending under the rule of Zuma has increased government debt to more than 50%!
I read an article where the late economist Milton Friedman pointed out
“You cannot reduce the deficit by raising taxes. Increasing taxes only results in more spending, leaving the deficit at the highest level conceivably accepted by the public. Political Rule Number One is government spends what government receives plus as much more as it can get away with.”
brumilde said:
on Monday 12-Nov-18 08:06 AM
I have no idea how the government think... People need the fuel to get to work and earn the salary that pays for the fuel... so lets increase the fuel because our ex president made a shady deal to line the pockets of his friends.
Megan said:
on Thursday 08-Nov-18 04:58 PM
I agree that these prices the petrol is hitting really isn't sustainable and honestly the adverts of Gautrain on the radio isn't appealing either, I don't think its more convenient or cheaper to take a train or any form of public transport as an alternative as they all will catch up to the fuel hicks anyway (and the safety factor of course).
Clare said:
on Thursday 08-Nov-18 02:32 PM
Petrol pricing is so high What filled my Tank was R400 now I pay almost R600 for petrol I don't work to live I work for petrol... And I have read that they are looking at R20.00 a Liter by the end of this Year.
Jessica A said:
on Thursday 08-Nov-18 09:12 AM
Sanctions imposed previously had a tremendous impact on SA economy;
'Oil sales were particularly hard hit. In 2004‚ according to StatsSA‚ South Africa bought 8-million tonnes of crude oil from Iran‚ and the country was the third-biggest exporter of oil to South Africa in 2011.
However‚ due to the US-imposed sanctions‚ this dropped to zero by the middle of 2013‚ and it has yet to pick up again.'
If we resort to 0 once more, crude oil will have to come from an alternative and more costly source, costly both politically and financially.
This is all but a vicious cycle, because in turn the cost of living will rise and basic commodities will be beyond the reach of most. This will lead to protests for salary increases and so it goes....
nina said:
on Thursday 08-Nov-18 08:55 AM
In 2012 I travelled to the US and at that time, if I am not mistaken, the Rand was around R7 or R8 to the Dollar. It is quite frightening to see where it is now, 6 years later.
Michelle said:
on Thursday 08-Nov-18 08:46 AM
I agree, seeing the petrol price go up the whole time is just depressing. How will we live a sustainable life like this?
Melissa van Tellingen said:
on Thursday 08-Nov-18 08:25 AM
We can't keep up with the increasing petrol prices. It feels to me like it goes up every couple of weeks. I heard on the radio that they want to bring in another fuel levy for the etolls as well. I agree with Patrick in that the only way we can avoid the petrol would be by purchasing electronic cars, which isn't big in South Africa at the moment. Like Jadine said, the constant increasing petrol price is not sustainable and something should be done about it.
Jadine Richards said:
on Thursday 08-Nov-18 08:12 AM
The increases in the petrol price have really been depressing. There seems to be no relief. Something needs to change because these increases are really not sustainable.
patrick said:
on Thursday 08-Nov-18 08:12 AM
The price of Petrol affects everything. The solution is that we must really get serious about moving away from petrol cars towards electric ones. Even economies which are dependent on oil like Middle East are moving away from it. Davos in the Desert is one of those examples.
Brenda Du Toit said:
on Thursday 08-Nov-18 07:27 AM
Its scary to see the petrol price that is going up. People only work for they household and petrol to get to work.They need to do something regarding the petrol prices. Petrol is so high we will not be able to go no where. I feel sorry for the people that is going to holiday.
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!
