1. Adjustment to the fuel price: Wednesday, 1 September 2010
Product:
Petrol (all grades)10.000 cents per litre decrease in retail price
Diesel 0.05% Sulphur 0.000 no change
Diesel 0.005% Sulphur 2.000 cents per litre decrease in wholesale price
Illuminating Paraffin(Wholesale) 5.000 cents per litre decrease in wholesale price
Illuminating Paraffin(SMNRP) 7.000 c/l decrease in the Single Maximum National Retail price (SMNRP)
Maximum Retail Price for LPGAS 26.000 c/l decrease in the Gauteng Region only
2. Economic factors affecting the unit over/under-recoveries for the period 2 July 2010 to 29 July 2010
During the period under review, the average international product prices of petrol, diesel and illuminating paraffin increased.
The average Rand/US Dollar exchange rate strengthened when compared to the previous period. The average Rand/US Dollar exchange rate for the period 30 July 2010 to 26 August 2010 was 7.3178 compared to 7.5757 during the previous period.
3. Single maximum national retail price for illuminating paraffin (SMNRP)
The Single Maximum National Retail Price for Illuminating Paraffin changes on a monthly basis and is promulgated in the Government Gazette. The Single Maximum National Retail Price for the period 1 September 2010 to 5 October 2010 will be 680.0c/l compared to 687.0 c/l for the period 4 August 2010 to 31 August 2010 that is a decrease of 7.00c/l.
4. Maximum LPGAS refinery gate price
The maximum refinery gate price will be R5 218.72 per metric ton (289.63 c/l), excluding VAT, for the period 1 September 2010 to 5 October 2010.
5. Price adjustment
In terms of the agreed mechanism:
(a) Price changes are adjusted in such a manner that the over- or under-recovery during the prior month will be corrected in the following month; and
(b) The unit over- or under-recoveries are rounded up or down to the nearest full cent so that the effect of rounding contributes to the clearing of the cumulative balance of the individual products on the slate.
(c) In order to manage a negative balance in the Cumulative over/(under) recovery account (the Slate), a Self-Adjusting Slate Levy Mechanism (SLM) was implemented with effect from 7 January 2009 (the SLM is available on the website of the Department of Minerals and Energy). A Slate levy will only be applicable on all petrol and diesel grades if the Slate balance is negative (cumulative under recovery) by more than R250.0 million
6. Breakdown of price adjustment
|
|
Petrol 95 ULP |
Diesel 0.05 (%) |
Diesel 0.005(%) |
Illuminating Paraffin |
LPGAS (Gauteng, Zone 9C) |
|
The price adjustments in (1) above are based on the following actual data: |
|
|
|
|
|
|
Average product over/(under)-recovery, measured for the 20 days from 30/07/2010 to 26/08/2010 (cents / litre) as detailed below. |
9.343 |
(0.085) |
(2.112) |
5.350 |
|
|
Cumulative positive/(negative) slate balances end of July 2010 (R-million) |
652.462 |
310.092 |
310.092 |
(102.920) |
|
|
The price adjustments consist of the following elements: |
c/l |
c/l |
c/l |
c/l |
|
|
Average product over/(under)-recovery rounded to the nearest full cent for price (increase) / decrease |
10.000 |
0.000 |
2.000 |
5.000 |
|
|
LPGas BFP, retail and VAT (increase)/decrease |
|
|
|
|
(26.000) |
|
Total price (increase) / decrease |
10.000 |
0.000 |
2.000 |
5.000 |
( 26.000) |
The report of the independent auditors is available on request.
8. Analysis of the elements that resulted in the BFP over/(under)-recoveries
The over/(under)-recoveries for the period under review were affected by the factors set out below, which can be quantified as follows:
|
|
Petrol 95 ULP |
Diesel 0.05 (%) |
Diesel 0.005(%) |
Illuminating Paraffin |
|
Movements in external factors |
|
|
|
|
|
Movement in International Product Prices |
4.832 |
15.924 |
17.445 |
9.593 |
|
ovement in Exchange Rate |
14.147 |
15.212 |
15.333 |
14.943 |
|
BFP Over/(under)-recovery for the period 02/07/2010 to 29/07/2010 |
9.343 |
0.085 |
2.112 |
5.350 |
9. Composition of the maximum retail prices for LPGAS at the coast (zone 1a) and in the inland area (zone 9c) in cents per kilogram
|
Price element |
Coast |
Inland |
|
Maximum refinery gate price |
521.870 |
521.870 |
|
Primary transport costs |
37.120 |
175.960 |
|
Operating expenses |
343.000 |
343.000 |
|
Working capital |
26.000 |
26.000 |
|
Depreciation |
126.000 |
126.000 |
|
Gross margin: Cylinder-filling plant |
161.000 |
161.000 |
|
Sub-total (1) |
1214.990 |
1353.528 |
|
Retail Margin: (15% of Subtotal (1)) |
182.249 |
203.075 |
|
Sub-total (2) |
1397.239 |
1556.905 |
|
Value Added Tax (14% Sub-total (2)) |
195.613 |
217.967 |
|
Maximum Retail Price(Rounded to full cents) |
1593.000 |
1775.000 |
10. Annexure
The annexure attached contains details of the composition of product prices as well as history of the price changes.
Annexure 1
Composition of the retail price of petrol and the wholesale prices for diesel and IP in Gauteng for the period 04/08/2010 to 31/08/2010 will be as follows:
|
|
Petrol 95 ULP c/l |
Petrol 93 ULP & LRP c/l |
Diesel 0.05% S c/l |
Diesel 0.005% S c/l |
Illuminating Paraffin c/l |
|
Wholesale margin |
51.087 |
50.868 |
50.860 |
50.860 |
51.072 |
|
Service cost recoveries |
10.800 |
10.800 |
10.800 |
10.800 |
18.200 |
|
Storage, handling & delivery costs |
10.800 |
10.800 |
10.800 |
10.800 |
10.800 |
|
Distribution cost |
0 |
0 |
0 |
0 |
7.400 |
|
Dealers margin |
72.700 |
72.700 |
0 |
0 |
0 |
|
Zone differential in Gauteng |
15.500 |
15.500 |
15.500 |
15.500 |
29.800 |
|
IP Tracer levy |
0 |
0 |
0.010 |
0.010 |
0 |
|
Fuel levy |
167.500 |
167.500 |
152.500 |
152.500 |
0 |
|
Customs & excise duty |
4.000 |
4.000 |
4.000 |
4.000 0 |
|
|
RAF levy |
72.000 |
72.000 |
72.000 |
72.000 |
0 |
|
Petroleum Products levy |
0.150 |
0.150 |
0.150 |
0.150 |
0 |
|
Slate levy |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
DSML |
10.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Equalisation Fund Levy |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Transport Recovery levy |
3.000 |
3.000 |
3.000 |
3.000 |
|
|
Pump Rounding |
0.200 |
0.200 |
|
|
|
|
Sub-total |
406.937 |
396.718 |
308.820 |
308.820 |
99.072 |
|
Contribution to the Basic Fuel Price |
400.063 |
395.282 |
429.630 |
433.030 |
422.128 |
|
Retail Price |
807.00 |
792.00 |
|
|
|
|
Wholesale price |
|
738.45 |
741.85 |
521.20 |
|
Statistics of price change
|
|
Petrol 95 ULP |
Diesel |
Illuminating Paraffin |
LPGAS |
||||
|
Effective from: |
Gauteng SA c/l |
Coast SA c/l |
Gauteng SA c/l |
Coast SA c/l |
Gauteng SA c/l |
Coast SA c/l |
Gauteng SA c/kg |
Coast SA c/kg |
|
|
|
|
From 4 January 2006 0,05% Sulphur |
|
|
|
|
|
|
03-Dec-08 |
735.00 |
711.00 |
822.30 |
808.50 |
628.00 |
604.10 |
|
|
|
07-Jan-09 |
601.00 |
576.00 |
654.35 |
639.65 |
496.70 |
467.60 |
|
|
|
04-Feb-09 |
662.00 |
637.00 |
649.35 |
634.65 |
482.70 |
453.60 |
|
|
|
04-Mar-09 |
707.00 |
682.00 |
611.35 |
596.65 |
456.70 |
427.60 |
|
|
|
01-Apr-09 |
738.00 |
713.00 |
650.85 |
636.15 |
451.70 |
422.60 |
|
|
|
06-May-09 |
735.00 |
710.00 |
658.85 |
644.15 |
464.70 |
435.60 |
|
|
|
03-Jun-09 |
750.00 |
727.00 |
645.95 |
632.65 |
455.70 |
426.60 |
|
|
|
01-Jul-09 |
790.00 |
767.00 |
685.95 |
672.65 |
501.70 |
472.60 |
|
|
|
05-Aug-09 |
769.00 |
746.00 |
665.95 |
652.65 |
487.70 |
458.60 |
|
|
|
02-Sep-09 |
805.00 |
782.00 |
700.95 |
687.65 |
508.70 |
479.60 |
|
|
|
07-Oct-09 |
765.00 |
742.00 |
668.45 |
655.15 |
481.20 |
452.10 |
|
|
|
04-Nov-09 |
765.00 |
742.00 |
678.45 |
665.15 |
495.20 |
466.10 |
|
|
|
02-Dec-09 |
792.00 |
769.00 |
703.45 |
690.15 |
524.20 |
495.10 |
|
|
|
06-Jan-10 |
786.00 |
763.00 |
689.45 |
676.15 |
512.20 |
483.10 |
|
|
|
03-Feb-10 |
804.00 |
781.00 |
699.45 |
686.15 |
517.20 |
488.10 |
|
|
|
03-Mar-10 |
810.00 |
787.00 |
703.45 |
690.15 |
515.20 |
486.10 |
|
|
|
07-Apr-10 |
858.00 |
835.00 |
751.95 |
738.65 |
536.20 |
507.10 |
|
|
|
05-May-10 |
872.00 |
848.00 |
781.45 |
767.65 |
566.20 |
538.10 |
|
|
|
02-Jun-10 |
845.00 |
821.00 |
766.45 |
752.65 |
553.20 |
525.10 |
|
|
|
14-Jul-10 |
827.00 |
803.00 |
751.45 |
737.65 |
541.20 |
513.10 |
1 727.00 |
1 569.00 |
|
04-Aug-10 |
817.00 |
793.00 |
738.45 |
724.65 |
526.20 |
498.10 |
1 801.00 |
1 619.00 |
|
01-Sep-10 |
807.00 |
783.00 |
738.45 |
724.65 |
521.20 |
493.10 |
1 775.00 |
1593.00 |
