28 July 2006
With effect from 00h01, Wednesday, 2 August 2006, the price of fuel will be
adjusted as follows:
Product:
* Petrol (all grades) - 31.000 cents per litre increase in retail price
* Diesel 0.05% Sulphur - 22.000 cents per litre increase in wholesale
price
* Diesel 0.005% Sulphur - 25.000 cents per litre increase in wholesale
price
* Illuminating Paraffin - 21.000 cents per litre increase in wholesale
price
* Illuminating Paraffin - 28.000 c/l increase in the Single Maximum National
Retail price (SMNRP)
2. Economic factors affecting the unit over/under-recoveries for the period
30 June 2006 to 27 July 2006
During the period under review, the average international product prices of
Petrol, Diesel and Illuminating Paraffin increased.
The average Rand/US Dollar exchange rate weakened when compared to the
previous period. The average Rand/US Dollar exchange rate for the period 30
June 2006 to 27 July 2006 was 7.1276 compared to 6.9860 during the previous
period.
3. 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 2 August 2006 to 5 September 2006 will
be 665,0 c/l compared to 637,0 c/l from 7 June 2006 to 4 July 2006, that is an
increase of 28,0 c/l.
4. 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 July 2006 to 31 July 2006 will be
R5 608.46 per metric ton (311.26 c/l).
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.
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.
6. 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
30/06/2006 to 27/07/2006 (cents/litre) as detailed below:
* Petrol 95 ULP: (29.714)
* Diesel 0.05(%): (20.587)
* Diesel 0.005(%): (23.418)
* Illuminating Paraffin: (19.561)
- Cumulative positive/(negative) slate balances end of June 2006
(R-million):
* Petrol 95 ULP: (840.737)
* Diesel 0.05(%): (712.945)
* Diesel 0.005(%): (712.945)
* Illuminating Paraffin: (72.277)
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: (30.000)
* Diesel 0.05(%) c/l: (21.000)
* Diesel 0.005(%) c/l: (24.000)
* Illuminating Paraffin c/l: (20.000)
- 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)
- Total price (increase) / decrease:
* Petrol 95 ULP c/l: (31.000)
* Diesel 0.05(%) c/l: (22.000)
* Diesel 0.005(%) c/l: (25.000)
* Illuminating Paraffin c/l: (21.000)
7. Report of the Independent Auditors
The report of the independent auditors is available on request.
8. 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: (21.308)
* Diesel 0.05% c/l: (11.803)
* Diesel 0.005% c/l: (14.467)
* Illuminating Paraffin c/l: (11.217)
- Movement in Exchange Rate
* Petrol: (8.406)
* Diesel 0.05%:(8.784)
* Diesel 0.005%:(8.951)
* Illuminating Paraffin: (8.345)
Over/(under)-recovery for the period 26/04/2006 to 1/06/2006
* Petrol: (29.714)
* Diesel 0.05%: (20.587)
* Diesel 0.005%: (23.418)
* Illuminating Paraffin: (19.561)
Enquiries: Ms B Mafuna
Tel: (012) 317 8086
Cell: 082 571 4310
Issued by: Department of Minerals and Energy
28 July 2006
Source: Department of Minerals and Energy (http://www.dme.gov.za)
