Product:
* Petrol 93 ULP and LRP 15.000 cents per litre decrease in retail price
* Petrol 95 ULP and LRP 18.000 cents per litre decrease in retail price
* Diesel 0.05 percent Sulphur 15.000 cents per litre decrease in wholesale price
* Diesel 0.005 percent Sulphur 16.000 cents per litre decrease in wholesale price
* Illuminating Paraffin (Wholesale) 12.000 cents per litre decrease in wholesale price
* Illuminating Paraffin (SMNRP) 16.000 c/l decrease in the Single Maximum National Retail price (SMNRP)
2. Economic factors affecting the unit over/under-recoveries for the period 28 may 2010 to 2 July 2010
During the period under review, the average international product prices of Petrol, Diesel and Illuminating Paraffin decreased.
The average Rand/US Dollar exchange rate weakened when compared to the previous period. The average Rand/US Dollar exchange rate for the period 28 May 2010 to 1 July 2010 was 7.6708 compared to 7.6575 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 14 July 2010 to 3 August 2010 will be 707.0c/l compared to 723.0 c/l for the period 2 June 2010 to 13 July 2010 that is a decrease of 16.00c/l.
4. Maximum LPGAS refinery gate price
The maximum refinery gate price will be R5 494.46 per metric ton (304.94 c/l) for the period 14 July 2010 to 3 August 2010.
5. Maximum retail prices for LPGAS
Refer to annexure B and C.
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 or (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 million
7. Breakdown of price adjustment
The price adjustments in (one) above are based on the following actual data:
* Average product over/ (under)-recovery, measured for the 25 days from 28 May 2010 to 1 July 2010 (cents / litre) as detailed below.
Petrol 95 ULP: (17.824)
Diesel 0.05 percent: (14.613)
Diesel 0.0005 percent: (15.145)
Illuminating paraffin: (12.694)
* Cumulative positive/ (negative) slate balances end of May 2010
(R-million)
Petrol 95 ULP: (443.741)
Diesel 0.05 percent: (108.312)
Diesel 0.0005 percent: (108.312)
Illuminating paraffin: (115.603)
The price adjustments consist of the following elements:
* Average product over or (under)-recovery rounded to the nearest full cent for price (increase) or decrease
Petrol 95 ULP (cents per litre): (18.000)
Diesel 0.05 percent (cents per litre): (15.000)
Diesel 0.0005 percent (cents per litre): (16.000)
Illuminating paraffin (cents per litre): (12.000)
* Total price (increase)/decrease
Petrol 95 ULP: (18.000)
Diesel 0.05 percent: (15.000)
Diesel 0.0005 percent: (16.000)
Illuminating paraffin: (12.000)
8. Report of the independent auditors
The report of the independent auditors is available on request.
9. Analysis of the elements that resulted in the over/ (under)-recoveries
The over or (under)-recoveries for the period under review were affected by the factors set out below, which can be quantified as follows:
* Movements in external factors
Movement in international product prices
Petrol 95 ULP (cents per litre): 18.555
Diesel 0.05 percent (cents per litre): 15.381
Diesel 0.0005 percent (cents per litre): 15.917
Illuminating paraffin (cents per litre): 13.459
Movement in exchange rate
Petrol 95 ULP (cents per litre): (0.731)
Diesel 0.05 percent (cents per litre): (0.768)
Diesel 0.0005 percent (cents per litre): (0.771)
Illuminating paraffin (cents per litre): (0.765)
Over/ (under)-recovery for the period 28 May 2010 to 1 July 2010
Petrol 95 ULP (cents per litre): 17.824
Diesel 0.05 percent (cents per litre): 14.613
Diesel 0.0005 percent (cents per litre): 15.145
Illuminating paraffin (cents per litre): 12.694
10. Annexure
The annexure attached contains details of the composition of product prices as well as history of the price changes.
Annexure one
Composition of the retail price of petrol and the wholesale prices for diesel and IP in Gauteng for the period 14 July 2010 to 3 August 2010 will be as follows:
Wholesale margin
Petrol 95 ULP (cents per litre): 51.087
Petrol 93 ULP and LRP (cents per litre): 50.868
Diesel 0.05 percent S (cents per litre): 50.860
Diesel 0.005 percent S: 50.860
Illuminating paraffin (cents per litre): 51.072
* Service cost recoveries
Petrol 95 ULP (cents per litre): 10.800
Petrol 93 ULP and LRP (cents per litre): 10.800
Diesel 0.05 percent S (cents per litre): 10.800
Diesel 0.005 percent S: 10.800
Illuminating paraffin (cents per litre): 18.200
* Storage, handling and delivery costs
Petrol 95 ULP (cents per litre): 10.800
Petrol 93 ULP and LRP (cents per litre): 10.800
Diesel 0.05 percent S (cents per litre): 10.800
Diesel 0.005 percent S: 10.800
Illuminating paraffin (cents per litre): 10.800
* Distribution cost
Petrol 95 ULP (cents per litre): 0
Petrol 93 ULP and LRP (cents per litre): 0
Diesel 0.05 percent S (cents per litre): 0
Diesel 0.005 percent S: 0
Illuminating paraffin (cents per litre): 7.400
* Dealers margin
Petrol 95 ULP (cents per litre): 72.700
Petrol 93 ULP and LRP (cents per litre): 72.700
Diesel 0.05 percent S (cents per litre): 0
Diesel 0.005 percent S: 0
Illuminating paraffin (cents per litre): 0
* Zone differential in Gauteng
Petrol 95 ULP (cents per litre): 51.087
Petrol 93 ULP and LRP (cents per litre): 15.500
Diesel 0.05 percent S (cents per litre): 15.500
Diesel 0.005 percent S: 15.500
Illuminating paraffin (cents per litre): 29.800
* IP Tracer levy
Petrol 95 ULP (cents per litre): 0
Petrol 93 ULP and LRP (cents per litre): 0
Diesel 0.05 percent S (cents per litre): 0.010
Diesel 0.005 percent S: 0.010
Illuminating paraffin (cents per litre): 0
* Fuel levy
Petrol 95 ULP (cents per litre): 167.500
Petrol 93 ULP and LRP (cents per litre): 167.500
Diesel 0.05 percent S (cents per litre): 152.500
Diesel 0.005 percent S: 152.500
Illuminating paraffin (cents per litre): 0
*Customs and excise duty
Petrol 95 ULP (cents per litre): 4.000
Petrol 93 ULP and LRP (cents per litre): 4.000
Diesel 0.05 percent S (cents per litre): 4.000
Diesel 0.005 percent S: 4.000
Illuminating paraffin (cents per litre): 0
* RAF levy
Petrol 95 ULP (cents per litre): 72.000
Petrol 93 ULP and LRP (cents per litre): 72.000
Diesel 0.05 percent S (cents per litre): 72.000
Diesel 0.005 percent S: 72.000
Illuminating paraffin (cents per litre): 0
* Petroleum Products levy
Petrol 95 ULP (cents per litre): 0.150
Petrol 93 ULP and LRP (cents per litre): 0.150
Diesel 0.05 percent S (cents per litre): 0.150
Diesel 0.005 percent S: 0.150
Illuminating paraffin (cents per litre): 0
* Slate levy
Petrol 95 ULP (cents per litre): 0.000
Petrol 93 ULP and LRP (cents per litre): 0.000
Diesel 0.05 percent S (cents per litre): 0.000
Diesel 0.005 percent S: 0.000
Illuminating paraffin (cents per litre): 0.000
* DSML
Petrol 95 ULP (cents per litre): 10.000
Petrol 93 ULP and LRP (cents per litre): 0.000
Diesel 0.05 percent S (cents per litre): 0.000
Diesel 0.005 percent S: 0.000
Illuminating paraffin (cents per litre): 0.000
* Equalisation Fund Levy
Petrol 95 ULP (cents per litre): 0.000
Petrol 93 ULP and LRP (cents per litre): 0.000
Diesel 0.05 percent S (cents per litre): 0.000
Diesel 0.005 percent S: 0.000
Illuminating paraffin (cents per litre): 0.000
Incremental Inland Transport
* Recovery levy
Petrol 95 ULP (cents per litre): 3.000
Petrol 93 ULP and LRP (cents per litre): 3.000
Diesel 0.05 percent S (cents per litre): 3.000
Diesel 0.005 percent S: 3.000
* Pump Rounding
Petrol 95 ULP (cents per litre): 0.200
Petrol 93 ULP and LRP (cents per litre): 0.200
* Sub-total
Petrol 95 ULP (cents per litre): 406.937
Petrol 93 ULP and LRP (cents per litre): 396.718
Diesel 0.05 percent S (cents per litre): 308.820
Diesel 0.005 percent S: 308.820
Illuminating paraffin (cents per litre): 99.072
* Contribution to the Basic Fuel Price
Petrol 95 ULP (cents per litre): 465.063
Petrol 93 ULP and LRP (cents per litre): 457.282
Diesel 0.05 percent S (cents per litre): 472.630
Diesel 0.005 percent S: 475.030
Illuminating paraffin (cents per litre): 467.128
* Retail Price
Petrol 95 ULP (cents per litre): 872.00
Petrol 93 ULP and LRP (cents per litre): 854.00
* Wholesale price
Diesel 0.05 percent S (cents per litre): 781.45
Diesel 0.005 percent S: 752.85
Illuminating paraffin (cents per litre): 541.20
Annexure A
Statistics of price changes
Effective from: 3 January 2007
Petrol 95 ULP
Gauteng South Africa (cents per litre): 598.00
Coast South Africa (cents per litre): 574.00
Diesel
Gauteng South Africa (cents per litre): 551.10
Coast South Africa (cents per litre): 537.50
Illuminating Paraffin
Gauteng South Africa (cents per litre): 447.20
Coast South Africa (cents per litre): 424.20
Effective from: 7 February 2007
Petrol 95 ULP
Gauteng South Africa (cents per litre): 575.00
Coast South Africa (cents per litre): 551.00
Diesel
Gauteng South Africa (cents per litre): 542.10
Coast South Africa (cents per litre): 528.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 421.20
Coast South Africa (cents per litre): 398.20
Effective from: 7 March 2007
Petrol 95 ULP
Gauteng South Africa (cents per litre): 599.00
Coast South Africa (cents per litre): 575.00
Diesel
Gauteng South Africa (cents per litre): 552.10
Coast South Africa (cents per litre): 538.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 431.20
Coast South Africa (cents per litre): 408.20
Effective from: 4 April 2007
Petrol 95 ULP
Gauteng South Africa (cents per litre): 667.00
Coast South Africa (cents per litre): 643.00
Diesel
Gauteng South Africa (cents per litre): 590.10
Coast South Africa (cents per litre): 576.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 462.10
Coast South Africa (cents per litre): 438.20
Effective from: 2 May 2007
Petrol 95 ULP
Gauteng South Africa (cents per litre): 701.00
Coast South Africa (cents per litre): 677.00
Diesel
Gauteng South Africa (cents per litre): 620.30
Coast South Africa (cents per litre): 606.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 480.10
Coast South Africa (cents per litre): 456.20
Effective from: 6 June 2007
Petrol 95 ULP
Gauteng South Africa (cents per litre): 724.00
Coast South Africa (cents per litre): 700.00
Diesel
Gauteng South Africa (cents per litre): 625.30
Coast South Africa (cents per litre): 611.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 482.10
Coast South Africa (cents per litre): 458.20
Effective from: 4 July 2007
Petrol 95 ULP
Gauteng South Africa (cents per litre): 716.00
Coast South Africa (cents per litre): 692.00
Diesel
Gauteng South Africa (cents per litre): 636.30
Coast South Africa (cents per litre): 622.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 499.10
Coast South Africa (cents per litre): 475.20
Effective from: 1 August 2007
Petrol 95 ULP
Gauteng South Africa (cents per litre): 677.00
Coast South Africa (cents per litre): 651.30
Diesel
Gauteng South Africa (cents per litre): 637.50
Coast South Africa (cents per litre): 528.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 506.10
Coast South Africa (cents per litre): 482.20
Effective from: 5 September 2007
Petrol 95 ULP
Gauteng South Africa (cents per litre): 691.00
Coast South Africa (cents per litre): 667.00
Diesel
Gauteng South Africa (cents per litre): 656.30
Coast South Africa (cents per litre): 642.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 506.10
Coast South Africa (cents per litre): 482.20
Effective from: 3 October 2007
Petrol 95 ULP
Gauteng South Africa (cents per litre): 701.00
Coast South Africa (cents per litre): 677.00
Diesel
Gauteng South Africa (cents per litre): 679.30
Coast South Africa (cents per litre): 665.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 519.10
Coast South Africa (cents per litre): 495.20
Effective from: 7 November 2007
Petrol 95 ULP
Gauteng South Africa (cents per litre): 704.00
Coast South Africa (cents per litre): 680.00
Diesel
Gauteng South Africa (cents per litre): 673.30
Coast South Africa (cents per litre): 659.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 529.10
Coast South Africa (cents per litre): 505.20
Effective from: 5 December 2007
Petrol 95 ULP
Gauteng South Africa (cents per litre): 747.00
Coast South Africa (cents per litre): 723.00
Diesel
Gauteng South Africa (cents per litre): 724.30
Coast South Africa (cents per litre): 710.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 587.10
Coast South Africa (cents per litre): 563.20
Effective from: 2 January 2008
Petrol 95 ULP
Gauteng South Africa (cents per litre): 747.00
Coast South Africa (cents per litre): 723.00
Diesel
Gauteng South Africa (cents per litre): 725.30
Coast South Africa (cents per litre): 711.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 578.10
Coast South Africa (cents per litre): 554.20
Effective from: 6 February 2008
Petrol 95 ULP
Gauteng South Africa (cents per litre): 764.00
Coast South Africa (cents per litre): 740.00
Diesel
Gauteng South Africa (cents per litre): 732.30
Coast South Africa (cents per litre): 718.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 580.10
Coast South Africa (cents per litre): 556.20
Effective from: 5 March 2008
Petrol 95 ULP
Gauteng South Africa (cents per litre): 825.00
Coast South Africa (cents per litre): 801.00
Diesel
Gauteng South Africa (cents per litre): 810.30
Coast South Africa (cents per litre): 796.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 656.10
Coast South Africa (cents per litre): 632.20
Effective from: 2 April 2008
Petrol 95 ULP
Gauteng South Africa (cents per litre): 891.00
Coast South Africa (cents per litre): 867.00
Diesel
Gauteng South Africa (cents per litre): 938.30
Coast South Africa (cents per litre): 924.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 774.10
Coast South Africa (cents per litre): 750.20
Effective from: 7 May 2008
Petrol 95 ULP
Gauteng South Africa (cents per litre): 946.00
Coast South Africa (cents per litre): 922.00
Diesel
Gauteng South Africa (cents per litre): 1 009.30
Coast South Africa (cents per litre): 995.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 829.60
Coast South Africa (cents per litre): 805.70
Effective from: 4 June 2008
Petrol 95 ULP
Gauteng South Africa (cents per litre): 996.00
Coast South Africa (cents per litre): 972.00
Diesel
Gauteng South Africa (cents per litre): 1 080.30
Coast South Africa (cents per litre): 1 066.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 900.60
Coast South Africa (cents per litre): 876.70
Effective from: 2 July 2008
Petrol 95 ULP
Gauteng South Africa (cents per litre): 1 070.00
Coast South Africa (cents per litre): 1 040.00
Diesel
Gauteng South Africa (cents per litre): 1 143.30
Coast South Africa (cents per litre): 1 129.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 949.60
Coast South Africa (cents per litre): 925.70
Effective from: 6 August 2008
Petrol 95 ULP
Gauteng South Africa (cents per litre): 1 040.00
Coast South Africa (cents per litre): 1 010.00
Diesel
Gauteng South Africa (cents per litre): 1 127.30
Coast South Africa (cents per litre): 1 113.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 953.00
Coast South Africa (cents per litre): 929.10
Effective from: 3 September 2008
Petrol 95 ULP
Gauteng South Africa (cents per litre): 966.00
Coast South Africa (cents per litre): 942.00
Diesel
Gauteng South Africa (cents per litre): 983.30
Coast South Africa (cents per litre): 969.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 807.00
Coast South Africa (cents per litre): 783.10
Effective from: 1 October 2008
Petrol 95 ULP
Gauteng South Africa (cents per litre): 941.00
Coast South Africa (cents per litre): 917.00
Diesel
Gauteng South Africa (cents per litre): 927.30
Coast South Africa (cents per litre): 913.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 742.00
Coast South Africa (cents per litre): 718.10
Effective from: 5 November 2008
Petrol 95 ULP
Gauteng South Africa (cents per litre): 896.00
Coast South Africa (cents per litre): 872.00
Diesel
Gauteng South Africa (cents per litre): 903.30
Coast South Africa (cents per litre): 889.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 703.00
Coast South Africa (cents per litre): 679.10
Effective from: 3 December 2008
Petrol 95 ULP
Gauteng South Africa (cents per litre): 735.00
Coast South Africa (cents per litre): 711.00
Diesel
Gauteng South Africa (cents per litre): 822.30
Coast South Africa (cents per litre): 808.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 628.00
Coast South Africa (cents per litre): 604.10
Effective from: 7 January 2009
Petrol 95 ULP
Gauteng South Africa (cents per litre): 601.00
Coast South Africa (cents per litre): 576.00
Diesel
Gauteng South Africa (cents per litre): 654.35
Coast South Africa (cents per litre): 639.65
Illuminating paraffin
Gauteng South Africa (cents per litre): 496.70
Coast South Africa (cents per litre): 467.60
Effective from: 4 February 2009
Petrol 95 ULP
Gauteng South Africa (cents per litre): 662.00
Coast South Africa (cents per litre): 637.00
Diesel
Gauteng South Africa (cents per litre): 649.35
Coast South Africa (cents per litre): 634.65
Illuminating paraffin
Gauteng South Africa (cents per litre): 482.70
Coast South Africa (cents per litre): 453.60
Effective from: 4 March 2009
Petrol 95 ULP
Gauteng South Africa (cents per litre): 707.00
Coast South Africa (cents per litre): 682.00
Diesel
Gauteng South Africa (cents per litre): 611.35
Coast South Africa (cents per litre): 596.65
Illuminating paraffin
Gauteng South Africa (cents per litre): 456.70
Coast South Africa (cents per litre): 427.60
Effective from: 1 April 2009
Petrol 95 ULP
Gauteng South Africa (cents per litre): 738.00
Coast South Africa (cents per litre): 713.00
Diesel
Gauteng South Africa (cents per litre): 650.85
Coast South Africa (cents per litre): 636.15
Illuminating paraffin
Gauteng South Africa (cents per litre): 451.70
Coast South Africa (cents per litre): 422.60
Effective from: 6 May 2009
Petrol 95 ULP
Gauteng South Africa (cents per litre): 735.00
Coast South Africa (cents per litre): 710.00
Diesel
Gauteng South Africa (cents per litre): 658.85
Coast South Africa (cents per litre): 644.15
Illuminating paraffin
Gauteng South Africa (cents per litre): 464.70
Coast South Africa (cents per litre): 435.60
Effective from: 3 June 2009
Petrol 95 ULP
Gauteng South Africa (cents per litre): 750.00
Coast South Africa (cents per litre): 727.00
Diesel
Gauteng South Africa (cents per litre): 645.95
Coast South Africa (cents per litre): 632.65
Illuminating paraffin
Gauteng South Africa (cents per litre): 455.70
Coast South Africa (cents per litre): 426.60
Effective from: 1 July 2009
Petrol 95 ULP
Gauteng South Africa (cents per litre): 790.00
Coast South Africa (cents per litre): 767.00
Diesel
Gauteng South Africa (cents per litre): 685.95
Coast South Africa (cents per litre): 672.65
Illuminating paraffin
Gauteng South Africa (cents per litre): 501.70
Coast South Africa (cents per litre): 472.60
Effective from: 5 August 2009
Petrol 95 ULP
Gauteng South Africa (cents per litre): 769.00
Coast South Africa (cents per litre): 746.00
Diesel
Gauteng South Africa (cents per litre): 665.95
Coast South Africa (cents per litre): 652.65
Illuminating paraffin
Gauteng South Africa (cents per litre): 487.70
Coast South Africa (cents per litre): 458.60
Effective from: 2 September 2009
Petrol 95 ULP
Gauteng South Africa (cents per litre): 805.00
Coast South Africa (cents per litre): 782.00
Diesel
Gauteng South Africa (cents per litre): 700.95
Coast South Africa (cents per litre): 687.65
Illuminating paraffin
Gauteng South Africa (cents per litre): 508.70
Coast South Africa (cents per litre): 479.60
Effective from: 7 October 2009
Petrol 95 ULP
Gauteng South Africa (cents per litre): 765.00
Coast South Africa (cents per litre): 742.00
Diesel
Gauteng South Africa (cents per litre): 668.45
Coast South Africa (cents per litre): 528.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 481.20
Coast South Africa (cents per litre): 452.10
Effective from: 4 November 2009
Petrol 95 ULP
Gauteng South Africa (cents per litre): 765.00
Coast South Africa (cents per litre): 742.00
Diesel
Gauteng South Africa (cents per litre): 678.45
Coast South Africa (cents per litre): 665.15
Illuminating paraffin
Gauteng South Africa (cents per litre): 792.00
Coast South Africa (cents per litre): 769.00
Effective from: 2 December 2009
Petrol 95 ULP
Gauteng South Africa (cents per litre): 703.45
Coast South Africa (cents per litre): 690.15
Diesel
Gauteng South Africa (cents per litre): 542.10
Coast South Africa (cents per litre): 528.50
Illuminating paraffin
Gauteng South Africa (cents per litre): 524.20
Coast South Africa (cents per litre): 495.10
Effective from: 6 January 2010
Petrol 95 ULP
Gauteng South Africa (cents per litre): 786.00
Coast South Africa (cents per litre): 763.00
Diesel
Gauteng South Africa (cents per litre): 689.45
Coast South Africa (cents per litre): 676.15
Illuminating paraffin
Gauteng South Africa (cents per litre): 512.20
Coast South Africa (cents per litre): 483.10
Effective from: 3 February 2010
Petrol 95 ULP
Gauteng South Africa (cents per litre): 804.00
Coast South Africa (cents per litre): 781.00
Diesel
Gauteng South Africa (cents per litre): 699.45
Coast South Africa (cents per litre): 686.15
Illuminating paraffin
Gauteng South Africa (cents per litre): 517.20
Coast South Africa (cents per litre): 488.10
Effective from: 3 March 2010
Petrol 95 ULP
Gauteng South Africa (cents per litre): 810.00
Coast South Africa (cents per litre): 787.00
Diesel
Gauteng South Africa (cents per litre): 703.45
Coast South Africa (cents per litre): 690.15
Illuminating paraffin
Gauteng South Africa (cents per litre): 515.20
Coast South Africa (cents per litre): 486.10
Effective from: 7 April 2010
Petrol 95 ULP
Gauteng South Africa (cents per litre): 858.00
Coast South Africa (cents per litre): 835.00
Diesel
Gauteng South Africa (cents per litre): 751.95
Coast South Africa (cents per litre): 738.65
Illuminating paraffin
Gauteng South Africa (cents per litre): 536.20
Coast South Africa (cents per litre): 507.10
Effective form: 5 May 2010
Petrol 95 ULP
Gauteng South Africa (cents per litre): 872.00
Coast South Africa (cents per litre): 848.00
Diesel
Gauteng South Africa (cents per litre): 781.45
Coast South Africa (cents per litre): 767.65
Illuminating paraffin
Gauteng South Africa (cents per litre): 566.20
Coast South Africa (cents per litre): 538.10
Effective form: 2 June 2010
Petrol 95 ULP
Gauteng South Africa (cents per litre): 845.00
Coast South Africa (cents per litre): 821.00
Diesel
Gauteng South Africa (cents per litre): 766.45
Coast South Africa (cents per litre): 752.65
Illuminating paraffin
Gauteng South Africa (cents per litre): 553.20
Coast South Africa (cents per litre): 525.10
Effective from: 14 July 2010
Petrol 95 ULP
Gauteng South Africa (cents per litre): 827.00
Coast South Africa (cents per litre): 803.00
Diesel
Gauteng South Africa (cents per litre): 751.45
Coast South Africa (cents per litre): 737.65
Illuminating paraffin
Gauteng South Africa (cents per litre): 541.20
Coast South Africa (cents per litre): 513.10
Annexure B
Implementation of maximum retail prices for Liquefied Petroleum Gas (LPGAS) supplied to residential consumers with effect from Wednesday, 14 July 2010
The Minister of Energy has approved the setting of maximum retail prices for LPGas supplied to residential consumers with effect from Wednesday, 14 July 2010. The Regulations and Working Rules to determine the maximum Retail Prices for LPGas are available on the website of the Department of Energy: http://www.energy.gov.za. From August 2010, these prices will also be adjusted on the first Wednesday of each month as is the case with petrol, diesel and illuminating paraffin (IP). These prices will also differ from one Magisterial District Zone (MDZ) to the next due to the application of different transport tariffs applicable to each MDZ. The MDZs for LPGas will be in the same vein as those of petrol, diesel and IP which are already available on the department’s website. The Single Maximum National Retail Price for Illuminating Paraffin changes on a monthly basis on the second Wednesday of each month and is promulgated in the Government Gazette.
In the residential market LPGas is mainly used by the affluent portion of the South African population for heating and recreational purposes. However, LPGas is not accessible to a large portion of the South African residential sector and therefore these households utilise wood, illuminating paraffin, biomass and other non-conventional fuels for cooking and heating purposes. The main reason for the non-utilisation of LPGas by the less affluent portion of the residential sector is the non-accessibility of LPGas due to low demand culminating from exorbitant prices.
It is the view of the Department that these exorbitant LPGas prices, in urban and rural areas, stem from high mark-ups in the value chain (from cylinder-filling to retail) of LPGas. In order to terminate the continuation of this practise, the Department of Energy is of the view that by regulating maximum retail prices for LPGas supplied to residential consumers, they will no longer be exploited by exorbitant mark-ups whilst the role players in the LPGas industry are fairly compensated for their capital investments and operating costs. A maximum retail price for LPGas will also further enhance competition in the LPGas value chain and lead to the general accessibility thereof.
The greater use of LPGas for heating and cooking purposes by residential consumers are in line with the department’s policy stance of a broadened energy mix. LPGas is a safe and efficient fuel to utilise for cooking and space heating, being an effective alternative to electricity in this regard.
The department will continuously endeavour to refine the elements of the maximum retail price for LPGas which will be mutually beneficial to all role players in the LPGas supply chain and residential consumers of LPGas.
Enquiries:
Bheki Khumalo
Tel: 012 444 4270
E-mail: bheki.khumalo@energy.gov.za
Annexure C
Maximum retail prices for LPGAS at the coast (zone 1a) and in the inland area (zone 9c) in cents per kilogram
Price element
Maximum refinery gate price
Coast (Zone 1A): 549.446
Inland (Zone 9C): 549.446
Primary transport costs
Coast (Zone 1A): 37.120
Inland (Zone 9C): 175.960
Operating expenses
Coast (Zone 1A): 290.000
Inland (Zone 9C): 290.000
Secondary transport costs
Coast (Zone 1A): 0.713
Inland (Zone 9C): 0.713
Working capital
Coast (Zone 1A): 26.0000
Inland (Zone 9C): 26.0000
Depreciation
Coast (Zone 1A): 126.000
Inland (Zone 9C): 126.000
Gross margin: Cylinder-filling plant
Coast (Zone 1A): 227.000
Inland (Zone 9C): 227.000
Sub-total (1)
Coast (Zone 1A): 1256.279
Inland (Zone 9C): 1395.119
Retail margin
Coast (Zone 1A): 120.000
Inland (Zone 9C): 120.000
Sub-total (2)
Coast (Zone 1A): 1376.279
Inland (Zone 9C): 1515.119
Value Added Tax (14 percent of Sub-total (2)
Coast (Zone 1A): 192.679
Inland (Zone 9C): 212.120
Maximum Retail Price (Rounded to full cents)
Coast (Zone 1A): 1569.000
Inland (Zone 9C): 1727.000
Source: Central Energy Fund (http://www.cef.org.za)
