Thursday, 19 April 2012

Petrol is Still Cheaper In SA

South Africans pay less for Fuel than most other Developed Nations

South Africans pay less for Fuel than most other Developed Nations. This is what we are led to believe. Crap, bull, utter nonsense. This assumes we look at a direct foreign exchange rate.

Looking at a recent UK petrol price (source: AA) (Among the higher fuel costs in the world and 8th highest in Europe) of 138.5ppl (that's right folks, £1.39 /litre, and current South African fuel prices R11.77/l (for low grade 93 octane rubbish)
The direct conversion from UK to Rand results in a petrol price per litre of R17.45. Great - so far we are still cheaper. 

BUT the majority of UK workers don't earn less than £790/ month and most South African workers DO earn less than R10 000/month, a lot less. If this source (Career Advice Monster) is to be believed, the average UK worker earns £30 000/ yr (male) and £24 000/ yr (female). So for simplicity lets use the female average - which is £2000.00  /month, or in humble rands - around R25 000.00 - which is a fairly respectable middle income for any South African. Tax rates are different, and so are other costs, but we are not discussing these right now.


Real Fuel Cost Cost to People


R25000/month is 2.5 times the earning most South Africans receive - so we must then consider the real cost of our fuel as being 2.5 times the displayed pump price - i.e. R29.42 cents per litres - R12 more than the average UK worker forks out in relation to income. And we haven't even looked at the USA.

Also we must consider; using a private vehicle is almost mandatory in South Africa. Unlike the UK, we do not have a SAFE, reliable and cost effective public transport system. For our own safety we have to use our own vehicles to get to and from work (and anywhere else for that matter). Our children (at least in urban areas) are not safe using so called 'taxis' or even walking to school - they have to be taken. In a private vehicle.

And what about the additional costs of running these vehicles. The roads are in such a deplorable state the maintenance costs are high. Vehicular damage from potholes is ongoing, then we have the worst skilled drivers in the civilised world likely to cause a collision at any moment.
So how do these morons insist our fuel is still among the cheapest in the world? Do they really believe we as a nation are so ill-informed and un-educated that we cannot find the information and do the math. Maybe at one time; 20 years ago when information was restricted and thoughts were policed, they may have had a case to think they could pull the wool over our eyes. Not anymore.

And please stop comparing South African wages to Asian wages - We are not ants. Our heritage is first world, not despicable sweatshops. We should be comparing ourselves to other first world nations, and striving to return this nation to those standards, not looking at the worse examples in the world today and saying we are better off than they are. Let the Asian nations get on with their human slavery and stop buying cheap trash goods from those markets.

1 comment:

  1. I don't understand why the masses (ourselves included) are not betooging over the fact that the ANC still insist on taxing the hell out of our fuel. It was fine when petrol was actually a cheap comodity...