Why we keep paying more for petrol – even when the price of crude oil falls

by  on August 13, 2013
Bev Mortimer, an old friend  from our Rand Daily Mail days and now editor of the St Francis Chronicle put me onto the subject. She wrote: “Loads of people have been asking me why there are continuous petrol hikes. It has gone up almost every month this year and even though we sometimes see a drop in one month, it always increases by much more in subsequent months! When the crude oil price was at $152 not too far back, we didn’t see petrol this expensive? Please help us understand what’s happening.
The St Francis community has put its finger on something politicians don’t want us to think about. A creeping cancer called higher taxation – the reallocation of resources from the productive side of the economy (private sector) to the voracious consumers of wealth (public sector). Because it’s disguised as part of a bigger bill, the tax we’re paying at the petrol pump is hidden. But it’s been rising. A lot.
“…Today out of every litre of petrol bought in South Africa, Government takes R3.40c a litre: R2.44 a litre on the Government’s fuel levy slush fund and a staggering 96c a litre to the RAF – the treasure chest of ambulance chasing lawyers. The State’s share of our petrol rand has almost quadrupled to 26%. In only a dozen years.”
Read the full article here: biznewz.com/why-we-keep-paying-more-for-petrol-even-when-the-crude-oil-price-falls/

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