What is the relationship between fuel and dollar; commodities prices and dollar?
By Dr. Isaac Ayii Ayii (PhD)
May 23, 2016 (SSB) — The relationship between dollar rate, commodities and fuel is unpredictable and unjustifiable, when the dollar is dropping the fuel price rises and worst still it could disappear even in Black market or sold with super skyrocketing prices and the same to the commodities , while, the prices of commodities keep on rising or static despite the drop of dollar , I beg an answer from the ministry of finance or central bank whether that is what they meant by floating exchange rate of dollar or free market so established on 14 December last year, take for instance that day before H.E David Deng Athorbei degreed the floating exchange rate, the price for drum of nile water was 6 SSP, and 20 liters jerry can of clean water was 12 SSP, 0.5 liter of water was 1 SSP and that of 1.5 liters was 2 SSP as the saying goes water is life, everyone knows the current prices and its relationship to the saying , as the ministry of finance enjoys the economic crisis experimentation.
Although arithmetically this relationship is describes as inversely proportional which is contrary to the ideal of directly proportional for the case of Fuel or commodities which are imported goods depending on the USA dollar for which case the rises in Dollar would justify the rises in Fuel or commodities price and the reverse is true, therefore , I beg the second answer from our traders/business community who raises prices at the blink of an eye for the slightest increment of dollar , and does the opposite by paying deaf ears to the drastic dollar drop by either increasing their prices or keeping them static , is that what they understood by free market?, which is dependent on demand and supply, take for instance , the dollar drop from 4600SSP per 100USD to 2700SSP per 100USD, two weeks ago and still two weeks later 0.5 liter of water is still between 6 or 7 SSP , a drum of nile water is between 25 and 30 SSP, two weeks ago and two weeks later or more unknown weeks to come our traders are eagerly waiting for slightest increment of dollar from this lowest peak of two weeks to add on top of already super skyrocketing price .
The way forward, if our traders/business personals have fear of God or are patriotic enough than the prices would be like this as cited from price fluctuation above two weeks ago the dollar was 4600SSP per 100USD in black market and two weeks later it drops to 2700 SSP per 100USD in black market rate because that is the rate available compared to the theoretical rate of central bank only seen on notice board, than the percentage decrease would be calculated as this: 1900/4600*100=41% therefore the ideal price for the commodities and fuel in the market would go down by 41% for instance 0.5 liter of bottle of water would be 3.5 SSP or approximately 4 SSP instead of 6 SSP and so goes the calculation for the rest of commodities and fuel.
Since every trader, fisherman, vegetable seller, farmer, broom seller, tomato seller, Mango seller, milk seller, nile water collector seller etc claims the increment to be USD dollar and never remembers to decrease prices based on USD dollar decrement rate might be they are ignorance about calculation or they think the population is ignorance about mass extortion of money through masquerading trading or they think no government is monitoring them.
Dr. Isaac Ayii Ayii (PhD). Tel Contact on: +211955364626
The opinion expressed here is solely the view of the writer. The veracity of any claim made are the responsibility of the author, not PaanLuel Wël: South Sudanese Bloggers (SSB) website. If you want to submit an opinion article or news analysis, please email it to paanluel2011@gmail.com. SSB do reserve the right to edit material before publication. Please include your full name, email address and the country you are writing.
About Post Author
