27 October 2006
With effect from 00h01, Wednesday, 1 November 2006, the price of fuel will
be adjusted as follows:
Product:
* Petrol â All Grades - 21.000 cents per litre decrease in retail price
* Diesel 0.05% Sulphur - 2.000 cents per litre decrease in wholesale
price
* Diesel 0.005% Sulphur - 1.000 cents per litre decrease in wholesale
price
* Illuminating Paraffin (IP) - 13.000 cents per litre decrease in wholesale
price
* Illuminating Paraffin - 17.000 c/l decrease in the Single Maximum National
Retail price (SMNRP)
2. Economic factors affecting the unit over/under-recoveries for the period
29 September 2006 to 26 October 2006
During the period under review, the average international product prices of
Petrol and 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 29
September 2006 to 26 October 2006 was 7.7001 compared to 7.437 during the
previous period.
3. Decrease in slate levy on petrol
A Slate levy of 16,0c/l was applicable on all petrol grades for the period 4
October 2006 to 31 October 2006. This Slate levy will be reduced once again to
5,0 c/l with effect from 1 November 2006
4. Single maximum national retail price for illuminating paraffin
The Minister of Minerals and Energy has approved the implementation of a
Single Maximum National Retail Price for Illuminating Paraffin with effect from
2 April 2003. The Single Maximum National Retail Price for Illuminating
Paraffin will change on a monthly basis from the first Wednesday of each month
and will also be promulgated in the Government Gazette. The Single Maximum
National Retail Price with effect from 1 November 2006 to 5 December 2006 will
be 611,0 c/l compared to 628,0 c/l from 4 October 2006 to 31 October 2006, that
is a decrease of 17,0 c/l.
5. Liquid petroleum gas (LPGAS)
In terms of the Government Notice No R1 029 dated 31 July 2002 the maximum
refinery gate price of LPGAS for the period 1 October 2006 to 31 October 2006
will be R4 317.15 per metric ton (239.60 c/l).
6. 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.
With effect from 3 March 1999 an additional mechanism has been approved by
the Minister of Minerals and Energy, intended to assist in management of
cumulative slate balances and which operates as follows:
Should the cumulative individual slate balances (positive or negative)
exceed R10 million for petrol, R5 million for diesel or R1 million for
illuminating paraffin, an additional 1.0 cent per litre will be added or
subtracted to the price as determined in (a) and (b) above, depending on the
status of the individual slate balances.
7. Breakdown of price adjustment
The price adjustments in (1) above are based on the following actual
data:
- Average product over/(under)-recovery, measured for the 20 days from
29/09/2006 to 26/10/2006 (cents/litre) as detailed below:
* Petrol 95 ULP: (11.029)
* Diesel 0.05(%): (3.156)
* Diesel 0.005(%): (2.526)
* Illuminating Paraffin: (14.553)
- Cumulative positive/(negative) slate balances end of September 2006
(R-million):
* Petrol 95 ULP: (32.829)
* Diesel 0.05(%): (321.768)
* Diesel 0.005(%): (321.768)
* Illuminating Paraffin: (62.507)
The price adjustments consist of the following elements:
- Average product over/(under)-recovery rounded to the nearest full cent for
price (increase)/decrease:
* Petrol 95 ULP c/l: (11.000)
* Diesel 0.05(%) c/l: (3.000)
* Diesel 0.005(%) c/l: (2.000)
* Illuminating Paraffin c/l: (14.000)
- One cent/litre added or subtracted depending on cumulative slate balance
in terms of additional mechanism:
* Petrol 95 ULP c/l: (1.000)
* Diesel 0.05(%) c/l: (1.000)
* Diesel 0.005(%) c/l: (1.000)
* Illuminating Paraffin c/l: (1.000)
- Decrease in Slate Levy:
* Petrol 95 ULP c/l: (11.000)
- Total price (increase) / decrease:
* Petrol 95 ULP c/l: (21.000)
* Diesel 0.05(%) c/l: (2.000)
* Diesel 0.005(%) c/l: (1.000)
* Illuminating Paraffin c/l: (13.000)
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/(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 c/l: (22.298)
* Diesel 0.05% c/l: (16.651)
* Diesel 0.005% c/l: (16.106)
* Illuminating Paraffin c/l: (27.955)
- Movement in Exchange Rate
* Petrol c/l: (11.269)
* Diesel 0.05%: (13.495)
* Diesel 0.005%: (13.580)
* Illuminating Paraffin: (13.402)
Over/(under)-recovery for the period 29/09/2006 to 26/10/2006
* Petrol: (11.029)
* Diesel 0.05%: (3.156)
* Diesel 0.005%: (2.526)
* Illuminating Paraffin: (14.553)
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 01/11/2006 to 05/12/2006 will be as
follows:
- Wholesale margin:
* Petrol 95 ULP c/l: 39.487
* Petrol 93 ULP & LRP c/l: 39.268
* Petrol 91 ULP c/l: 39.049
* Diesel 0.05% S c/l: 39.260
* Diesel 0.005% S c/l: 39.260
* Illuminating Paraffin c/l: 39.472
- Service cost recoveries
* Petrol 95 ULP c/l: 7.000
* Petrol 93 ULP & LRP c/l: 7.000
* Petrol 91 ULP c/l: 7.000
* Diesel 0.05% S c/l: 7.000
* Diesel 0.005% S c/l: 7.000
* Illuminating Paraffin c/l: 14.400
- Storage, handling and delivery costs
* Petrol 95 ULP c/l: 7.000
* Petrol 93 ULP & LRP c/l: 7.000
* Petrol 91 ULP c/l: 7.000
* Diesel 0.05% S c/l: 7.000
* Diesel 0.005% S c/l: 7.000
* Illuminating Paraffin c/l: 7.000
- Distribution cost
* Petrol 95 ULP c/l: 0
* Petrol 93 ULP & LRP c/l: 0
* Petrol 91 ULP c/l: 0
* Diesel 0.05% S c/l: 0
* Diesel 0.005% S c/l: 0
* Illuminating Paraffin c/l: 7.400
- Dealers margin
* Petrol 95 ULP c/l: 46.900
* Petrol 93 ULP & LRP c/l: 46.900
* Petrol 91 ULP c/l: 46.900
* Diesel 0.05% S c/l: 0
* Diesel 0.005% S c/l: 0
* Illuminating Paraffin c/l: 0
- Zone differential in Gauteng
* Petrol 95 ULP c/l: 13.700
* Petrol 93 ULP & LRP c/l: 13.700
* Petrol 91 ULP c/l: 13.700
* Diesel 0.05% S c/l: 13.700
* Diesel 0.005% S c/l: 13.700
* Illuminating Paraffin c/l: 23.200
- IP Tracer levy
* Petrol 95 ULP c/l: 0
* Petrol 93 ULP & LRP c/l: 0
* Petrol 91 ULP c/l: 0
* Diesel 0.05% S c/l: 0.010
* Diesel 0.005% S c/l: 0.010
* Illuminating Paraffin c/l: 0
- Fuel levy
* Petrol 95 ULP c/l: 116.000
* Petrol 93 ULP & LRP c/l: 116.000
* Petrol 91 ULP c/l: 116.000
* Diesel 0.05% S c/l: 100.000
* Diesel 0.005% S c/l: 100.000
* Illuminating Paraffin c/l: 0
- Customs and excise duty
* Petrol 95 ULP c/l: 4.000
* Petrol 93 ULP & LRP c/l: 4.000
* Petrol 91 ULP c/l: 4.000
* Diesel 0.05% S c/l: 4.000
* Diesel 0.005% S c/l: 4.000
* Illuminating Paraffin c/l: 0
- RAF levy
* Petrol 95 ULP c/l: 36.500
* Petrol 93 ULP & LRP c/l: 36.500
* Petrol 91 ULP c/l: 36.500
* Diesel 0.05% S c/l: 36.500
* Diesel 0.005% S c/l: 36.500
* Illuminating Paraffin c/l: 0
- Slate levy
* Petrol 95 ULP c/l: 5.000
* Petrol 93 ULP & LRP c/l: 5.000
* Petrol 91 ULP c/l: 5.000
* Diesel 0.05% S c/l: 5.000
* Diesel 0.005% S c/l: 5.000
* Illuminating Paraffin c/l: 5.000
- DSML:
* Petrol 95 ULP c/l: 10.000
* Petrol 93 ULP & LRP c/l: 0.000
* Petrol 91 ULP c/l: 0.000
* Diesel 0.05% S c/l: 0.000
* Diesel 0.005% S c/l: 0.000
* Illuminating Paraffin c/l: 0.000
- Equalisation Fund Levy:
* Petrol 95 ULP c/l: 0.000
* Petrol 93 ULP & LRP c/l: 0.000
* Petrol 91 ULP c/l: 0.000
* Diesel 0.05% S c/l: 0.000
* Diesel 0.005% S c/l: 0.000
* Illuminating Paraffin c/l: 0.000
- Sub-total:
* Petrol 95 ULP c/l: 278.587
* Petrol 93 ULP & LRP c/l: 268.368
* Petrol 91 ULP c/l: 268.149
* Diesel 0.05% S c/l: 205.470
* Diesel 0.005% S c/l: 205.470
* Illuminating Paraffin c/l: 82.072
- Contribution to the Basic Fuel Price:
* Petrol 95 ULP c/l: 318.413
* Petrol 93 ULP & LRP c/l: 316.632
* Petrol 91 ULP c/l: 314.851
* Diesel 0.05% S c/l: 387.630
* Diesel 0.005% S c/l: 390.030
* Illuminating Paraffin c/l: 387.128
- Retail Price:
* Petrol 95 ULP c/l: 597.00
* Petrol 93 ULP & LRP c/l: 585.00
* Petrol 91 ULP c/l: 583.00
- Wholesale price:
* Diesel 0.05% S c/l: 593.10
* Diesel 0.005% S c/l: 595.50
* Illuminating Paraffin c/l: 469.20
(*) The wholesale price of diesel is regulated, but not the retail price
Statistics of price changes
7-Dec-05:
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 545.00 - 532.00
* Diesel: Gauteng SA c/l - Coast SA c/l: 529.80 - 516.50
* Illuminating Paraffin: Gauteng SA c/l - Coast SA c/l: 400.60 - 378.20
4-Jan-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 549.00 - 526.00
* Diesel: Gauteng SA c/l - Coast SA c/l: 517.80 - 504.50
* Illuminating Paraffin: Gauteng SA c/l - Coast SA c/l: 398.60 - 376.20
1-Feb-06
* Petrol 95 ULP: Gauteng SA c/l ? Coast SA c/l: 563.00 - 540.00
* Diesel: Gauteng SA c/l - Coast SA c/l: 517.80 - 504.50
* Illuminating Paraffin: Gauteng SA c/l - Coast SA c/l: 402.60 - 380.20
1-Mar-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 552.00 - 529.00
* Diesel: Gauteng SA c/l - Coast SA c/l: 517.80 - 504.50
* Illuminating Paraffin: Gauteng SA c/l - Coast SA c/l: 406.60 - 384.20
5-Apr-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 573.00 - 549.00
* Diesel: Gauteng SA c/l - Coast SA c/l: 544.10 - 530.50
* Illuminating Paraffin: Gauteng SA c/l - Coast SA c/l: 412.20 - 389.20
3-May-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 612.00 - 588.00
* Diesel: Gauteng SA c/l - Coast SA c/l: 571.10 - 557.50
* Illuminating Paraffin: Gauteng SA c/l - Coast SA c/l: 432.20 - 409.20
7-Jun-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 648.00 - 624.00
* Diesel: Gauteng SA c/l - Coast SA c/l: 600.10 - 586.50
* Illuminating Paraffin: Gauteng SA c/l - Coast SA c/l: 452.20 - 429.20
5-Jul-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 673.00 - 649.00
* Diesel: Gauteng SA c/l - Coast SA c/l: 632.10 - 618.50
* Illuminating Paraffin: Gauteng SA c/l - Coast SA c/l: 488.20 - 465.20
2-Aug-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 704.00 - 680.00
* Diesel: Gauteng SA c/l - Coast SA c/l: 654.10 - 640.50
* Illuminating Paraffin: Gauteng SA c/l - Coast SA c/l: 509.20 - 486.20
6-Sep-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 668.00 - 644.00
* Diesel Gauteng SA c/l - Coast SA c/l: 629.10 - 615.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 504.20 - 481.20
4-Oct-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 618.00 - 594.00
* Diesel Gauteng SA c/l - Coast SA c/l: 595.10 - 581.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 482.20 - 459.20
1-Nov-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 597.00 â 573.00
* Diesel Gauteng SA c/l - Coast SA c/l: 593.10 â 579.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 469.20 â 446.20
Enquiries: Ms B Mafuna
Tel: (012) 317 8086
Cell: 082 571 4310
Issued by: Department of Minerals and Energy
27 October 2006
