1. Introduction
The retail prices of all grades of petrol, the wholesale prices of both grades of diesel, illuminating paraffin and the maximum retail prices of LPGas will increase with effect from Wednesday, 4 December 2013.
NB: The fuel price changes include the annual margins adjustment, changes in the Basic Fuel Price (BFP) and the decrease in the slate levy.
2. Factors contributing to the fuel price increase
2.1 Annual adjustment of Petrol margins
Petrol margins are adjusted on an annual basis in December. This year, the margins are adjusted in accordance with the wholly implemented Regulatory Accounting System as approved. The margins increased from 182.7 c/l in the previous year to 198.9 c/l this year which amounts to 5.6% after taking into account the 4.9 c/l salary adjustment for petrol attendants effected in the petrol price in October 2013. The overall margins adjustment increases the petrol price by 11.2 cents per litre which is 0.9% of the total pump price.
2.2 Changes in the BFP
During the period under review (1 November 2013 to 29 November 2013), the movements in prices of both Brent crude oil and international petroleum products were positive while the volatility in the Rand/dollar exchange rate was negative towards the fuel price. The decrease in prices of the international petroleum products was not substantial enough to offset the effect of the volatile exchange rate on the fuel price.
2.3 Self-adjusting Slate Levy Mechanism Rules
In line with the Self-Adjusting Slate Levy Mechanism Rules, the Slate Levy on petrol and diesel will decrease by 4.38 c/l from 13.160 c/l to 8.78 c/l effective from 4 December 2013.
3. Fuel price changes
3.1 Taking cognizance of the fuel price data, approved fuel margins, and the decrease in Slate Levy of 4.38 c/l, the fuel price changes to be effected on 4 December 2013 are as follows:
- Petrol (both grades): 17.00 cl increase
- Diesel (0.05% sulphur): 10.12 c/l increase
- Diesel (0.005% sulphur); 10.12 c/l increase
- IP wholesale: 16.50 c/l increase
- SMNRP for IP: 22.0 c/l increase
- Maximum LPGas Retail Price: 18.00 c/kg increase
For more information, please contact:
E-mail: mediadesk@energy.gov.za
Tel: 012 4067481
Cell: 082 766 3674
