Does a lower fuel price mean lower retail prices?
Perhaps in other countries retailers are not so full of avarice that
when the fuel price is reduced, as we have seen with the reduction in
the international price of crude oil, from US$147 a barrel to around the
US$113 mark, they pass on the savings to the cash-strapped consumers,
rather than doing what our retailers do and that is to boost their
already over-extended profit accounts.
Unfortunately I cannot remember all consumer prices at the time the oil
price was increasing when it past the US$113 a barrel mark on its way up
to US$147. Petrol was increased by massive amounts, now that the oil
price has reduced and our currency is relatively stable, we are due for
a good price reduction, but we have been informed that it will be only a
paltry 69c to 75c a litre, with diesel coming down dramatically. Will
the greedy, profiteering retailers pass on their fuel savings to the
consumers, or add the difference to their profits?
We are sickened each and every year by CEOs of major food retailers
gloating about the R2-billion nett (after tax) profit the organisation
has made in the past financial year. That is GREED, plain and simple.
Their so called "price cuts" are a smokescreen for their avarice. They
simply add the difference onto another product, and the consumer always
loses.
date: Sat, 30 Aug 2008 15:07:01 +0200
author: ProfQ
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