I found all of my debit orders were going up this month. The DSTV price is going up. The Golf is going up. The 3D movie ticket price in cenima is going up too. The worse thing is that the fuel price is going down!

If everything is becoming expensive except the fuel, there is only one explanation for this from ecnomic perspective. The economy is falling!

I can't help thinking what will happen here. Probably more and more stunning girls will have to join in and make money. Probably they will have to increase their rates. Hi guys, what do u think? For me, at least I'm going to sell my Rand and change to Dollar.

With the cANCer in charge we'll be another pathetic Zimbabwe case soon

If you drive petrol, its going down, for diesel, 50 odd cent up

The fuel price has fallen simply because of the sustained lower "per barrel" rate that we have experienced for the last year.

However, I would shore your stocks up and keep your tanks full. With the sustained losses the rand has experienced they won't keep that price down for long, it will go up, and it will go up badly.

Right now the gains from the low barrel price and losses from the exchange rate are keeping it in check but that balance is soon going to tip and once it does you know what happens.

The ZAR has all but collapsed.

Measure your wealth in US dollars, not ZAR!!
You may have millions of ZAR in your pension fund, but 'twill not be worth much when you retire.
Unlike the ZAR's collapse in 2001, this one is more "sustained" as hath been described by Deamonza above.

Alternative sources of fossil fuel by means of fracking in the US and Canada have also contributed to the collapse of the barrel price of crude.

I think the collapsed is more sustained this time. The Russian is fighting against USA in Syria. The China stock is falling and someone lost 20 billion dollars in one day. The global economy is not stable this year. I didn't see any possibility that the currency of the developing countries can remain.

Anyway, I'm going to make my diesel tank full tomorrow and wait until Wednesday to make my petrol tank full. Lol

Deamonza

"Right now the gains from the low barrel price and losses from the exchange rate are keeping it in check but that balance is soon going to tip and once it does you know what happens."

You are quite correct sir that the drop in the dollar price of oil per barrel is one of the reasons for the drop in the ZAR price of fuel.

However, if the Rand stayed at the levels of some months ago, the price would have dropped even further. The weaker exchange rate will bite us when the price of oil goes up again.

And it will.

The price at which the fracking companies are producing oil is still lower that that of Brent, but their profit margins have been slashed dramatically by the Brent prices dropping so much. At some point it will be cheaper to buy from OPEC again, as the cost of production will be more that the Brent price.

So interesting times ahead. The Saudis have about two years cash reserves left, so I am predicting that the price will rise again before the two years are finished. They need someone with balls to cut production again, and the rest of the world will have to suck their dicks again. But since the Saudis were implicated in so many terrorist attacks, they are afraid to take that step.

Look for someone else to take the lead. Fuck with my livelihood, and I will fuck with yours.

Interesting times ahead.

But in short I agree, fuel will go up again.

But then look at the emergence of alternative fuels, whicj will soon be made available locally, and I am not talking about sunflower diesel. The first plant is being constructed and will be in operation hopefully by January.

Also note that there is a little known law to be passed that alternative fuels should make up 15% of local fuel sales within two years.

Peterbuck your knowledge always impresses me
Your writing is clear and well though out.
I will just dof my hat in appreciation

Biofuels are great in theory... but only in theory... production costs on Biofuel are higher per liter then your crude derivatives, never mind the secondary economic and environmental costs.
Crude breaks up into about 30 or 40 different products, Biofuels don't.

Here is a fact, The price of bread's and staples in the US, Canada and Europe rose massively inline with the increase of biofuel production. There is only so much farm land, therefore farmers diverting their crops to fuels productions are taking that crop out of the food cycle.
Fracking is far from a stable solution due to the external pressure on the entire fracking concept from the Environmental groups... I hosently don't see fracking as viable in the future, it will either be regulated to the point where the production cost is simply just too prohibitive or completely stopped outright.

[QUOTE;474155;matthew0506] I think the collapsed is more sustained this time. The Russian is fighting against USA in Syria. The China stock is falling and someone lost 20 billion dollars in one day. The global economy is not stable this year. /QUOTE]

The global economy itself is actually not doing that badly, the Euro and Dollar are a lot more stable then they were 5 years ago.
China is buggered, it was simply not sustainable the way they were going about it.
Russia's shot itself in the foot the moment it tried to the flex it's muscle in South Ossetia... they managed to paint a big target on their backs that ensured everyone was watching very carefully when they annexed Crimea and that they had plans in place to hammer their economy if they got bolshy.

There isn't a single BRICS country doing well right now. SA itself is a victim of it's own machinations.... the unions have driven up labour prices to unsustainable levels for all levels of business, Eskom has successfully bolloxed up the remaining levels of production. It is dire at the moment, and the forecast isn't looking much better for a long while.