Friday, 17 August 2007

Isn't free speech wonderful

Spigot's musings on the LPG industry is eliciting some interesting responses. Here are some more: What is the margin on a kilogramme of gas? Spigot knows the refinery gate price is controlled. After that it is every man for himself, some even saying that the profit on a kilogramme is higher in South Africa than anywhere else.Others have alleged a cartel or some sort of monopoly is operating. Surely not? Mind you, Spigot finds an awful lot of sameness about the price, wherever you buy the stuff. No matter. But what is curious that in the bad old days refineries used to blow the stuff out the chimneys as a bit of a nuisance. They called in flaring -- a practice frowned upon these days, thanks to the Greenie obsession with carbon dioxide. Come to think of it, bottled gas only made an appearance on the South African market in the 1970s. It was then a rich man's thing, for looking cool on a camping trip. Now of course it is a different matter. The poor are being encouraged to use it instead of coal or wood. Leading the urging is Escom. Could LPG pricing be something Nersa (the National Energy Regulator should look into. Better that than messing about with pipelines.

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