Mon, 19 Aug 2019

The war of attrition against fuel price corruption has begun.

A new initiative has been launched to combat the rampant corruption in the fuel price.

With yet ANOTHER fuel price hike on the cards, SA consumers have finally had enough. In the past, we felt helpless to do anything about it. One day petrol strikes and highway blockades were suggested, but the reality is, these won't work. They won't make enough of an impact to matter.

The SA Fuel War has a new strategy and it's based on sound and simple economics of supply and demand. Right now, the supply and demand are steady and so government can increase prices as they know motorists HAVE to buy fuel especially to get to work.

But, if that demand was to drop with significantly lower volumes being sold, this would result in a large surplus of fuel and lower sales. This would then constrict the revenue flowing to government and the only way to recover is to LOWER THE PRICE.

In a nutshell, private passenger cars account for 65% of all registered vehicles (according to ENATIS Stats for 2017) and of the 27 billion litres of fuel sold annually, 23 billion litres goes to private motorists.

With 70% of this fuel being used for work, this is where the strategy lies.

Let's assume that all 7 million motorists could work from home for 30 days and reduce that work fuel spend by 80%.

It would cut the individual's fuel volume from 250L per month to just 50 litres per month or one tank and reduce the volume sales of fuel from 1,75 billion litres to just 350 million litres.

It would leave a FUEL SURPLUS of an incredible 1,45 BILLION LITRES!

This would reduce their work fuel spend by R2240 per month to just R560 per month.

It would reduce total fuel revenue from R19,6bn to a staggering R3,92bn and leave a revenue VOID of R15,68bn and a loss of R7,25bn in the fuel levy.

Reality check

We know that not every business can do this and we're not expecting that, but for the most part, companies that have staff for admin, sales and accounting could conceivably utilise the digital communication channels (email, telecon, Whatsapp, etc.) to do the same jobs, just from home.This is only for 30 days and IT'S not a holiday from work.

This is a strategy of attrition and it will require everyone to go through some discomfort. Companies need to get behind this as well since EVERYONE is affected.

Lower fuel prices mean more disposable income, improved retail spend and injection into the economy- espcially around the festive season. But..We ALL need to get behind this.

This initiative needs at least 100 000 people to actively engage this strategy otherwise it won't have any effect. We are tired of just complaining and doing nothing - now there is SOMETHING that can be done. It's legal and doesn't require the burning down of anything. It is passive and powerful consumer resistance, much like the E-tolls are, except it's national and will have enough of an impact to MAKE government sit up and take notice.

The objective by creating a surplus is to force government to lower the price by December 5th or the attrition will continue.

We have the power

With our increasing number of personal social networks, more than ever before we have immense power to organise and spread the word across the country in a matter of hours.

We believe that EVERYONE is well and truly fed up with the rampant fuel price corruption. Fed up with government simply abusing our hard earned salaries for their greed and benefit.

SA Fuel War will finally allow South African motorists to cry out in in one voice, "We have had enough!"

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