25 April 2007
1. Adjustment to the fuel price: Wednesday, 2 May 2007
Product:
* Petrol (ALL GRADES) - 34.000 cents per litre increase in retail price (35c/l
in zones 6C, 12C, 62C, 17C and 67C)
* Diesel 0.05% Sulphur - 30.000 cents per litre increase in wholesale
price
* Diesel 0.005% Sulphur - 30.000 cents per litre increase in wholesale
price
* Illuminating Paraffin - 18.000 cents per litre increase in wholesale
price
* Illuminating Paraffin - 24.000 c/l increase in the Single Maximum National
Retail Price (SMNRP)
2. Economic factors affecting the unit over/under-recoveries for the period
30 March 2007 to 24 April 2007
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
March 2007 to 24 April 2007 was 7.1680 compared to 7.3841 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 May 2007 to 5 June 2007 will be 626,0
c/l compared to 602,0 c/l from 4 April 2007 to 2 May 2007, that is an increase
of 24,0 c/l.
4. Transport tariff increases in C-Zones
The Minister of Minerals and Energy has approved an increase of 4,04 percent
in rail transport tariffs with effect from 4 April 2007. Transport tariff
increases in C-Zones were not implemented in April 2007 in anticipation of the
decision by the National Energy Regulator of SA (Nersa) on Petronet's petroleum
pipeline transport tariff increase application. Nersa has not granted Petronet
an increase. However, the onward-rail transport tariffs applicable in C-Zones
will be increased and implemented into petrol and diesel price structures with
effect from 2 May 2007.
The retail pump prices in zones 6C, 12C, 62C, 17C and 67C will increase by
an additional 1,0 c/l. The new transport tariffs in C-zones with effect from 2
May 2007 will be available on the Department of Mineral and Energy's (DME)
website: http://www.dme.gov.za.
5. Liquid Petroleum Gas (LPGAS)
In terms of the Government Notice No R1029 dated 31 July 2002 the maximum
refinery gate price of LPGAS for the period 1 April 2007 to 30 April 2007 will
be R5 300.61 per metric ton (294.18 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 18 days from
30/03/2007 to 24/04/2007 (cents/litre) as detailed below:
* Petrol 95 ULP: 32.599
* Diesel 0.05(%): 28.426
* Diesel 0.005(%): 28.788
* Illuminating Paraffin: 16.432
- Cumulative positive/(negative) slate balances end of January 2007 (R
million):
* Petrol 95 ULP: 271.221
* Diesel 0.05(%): 11.957
* Diesel 0.005(%): 11.957
* Illuminating Paraffin: (32.167)
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: 33.000
* Diesel 0.05(%) c/l: 29.000
* Diesel 0.005(%) c/l: 29.000
* Illuminating Paraffin c/l: 17.000
- 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: 34.000
* Diesel 0.05(%) c/l: 30.000
* Diesel 0.005(%) c/l: 30.000
* Illuminating Paraffin c/l: 18.000
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: (44.662)
* Diesel 0.05% c/l: (40.433)
* Diesel 0.005% c/l: (40.853)
* Illuminating Paraffin c/l: (28.203)
- Movement in Exchange Rate
* Petrol c/l: (12.063)
* Diesel 0.05%: (12.007)
* Diesel 0.005%: (12.065)
* Illuminating Paraffin: (11.771)
Over/(under)-recovery for the period 03/03/2007 to 24/04/2007
* Petrol: (32.599)
* Diesel 0.05%: (28.426)
* Diesel 0.005%: (28.788)
* Illuminating Paraffin: (16.432)
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 02/05/2007 to 05/06/2007 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: 48.000
* Petrol 93 ULP & LRP c/l: 48.000
* Petrol 91 ULP c/l: 48.000
* 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: 24.100
- 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: 121.000
* Petrol 93 ULP & LRP c/l: 121.000
* Petrol 91 ULP c/l: 121.000
* Diesel 0.05% S c/l: 105.000
* Diesel 0.005% S c/l: 105.000
* 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
- Road Accident Fund (RAF) levy:
* Petrol 95 ULP c/l: 41.500
* Petrol 93 ULP & LRP c/l: 41.500
* Petrol 91 ULP c/l: 41.500
* Diesel 0.05% S c/l: 41.500
* Diesel 0.005% S c/l: 41.500
* Illuminating Paraffin c/l: 0
- Petroleum Pipelines levy:
* Petrol 95 ULP c/l: 0.190
* Petrol 93 ULP & LRP c/l: 0.190
* Petrol 91 ULP c/l: 0.190
* Diesel 0.05% S c/l: 0.190
* Diesel 0.005% S c/l: 0.190
- Slate levy:
* Petrol 95 ULP c/l: 4.810
* Petrol 93 ULP & LRP c/l: 4.810
* Petrol 91 ULP c/l: 4.810
* Diesel 0.05% S c/l: 4.810
* Diesel 0.005% S c/l: 4.810
* 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: 289.687
* Petrol 93 ULP & LRP c/l: 279.468
* Petrol 91 ULP c/l: 279.249
* Diesel 0.05% S c/l: 215.470
* Diesel 0.005% S c/l: 215.470
* Illuminating Paraffin c/l: 82.972
- Contribution to the basic fuel price:
* Petrol 95 ULP c/l: 411.313
* Petrol 93 ULP & LRP c/l: 408.532
* Petrol 91 ULP c/l: 405.751
* Diesel 0.05% S c/l: 404.630
* Diesel 0.005% S c/l: 406.030
* Illuminating Paraffin c/l: 379.128
- Retail Price:
* Petrol 95 ULP c/l: 701.00
* Petrol 93 ULP & LRP c/l: 688.00
* Petrol 91 ULP c/l: 685.00
- Wholesale price:
* Diesel 0.05% S c/l: 620.10
* Diesel 0.005% S c/l: 621.50
* Illuminating Paraffin c/l: 480.10
(*) 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 - 573.00
* Diesel Gauteng SA c/l - Coast SA c/l: 593.10 - 579.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 469.20 - 446.20
6-Dec-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 590.00 - 566.00
* Diesel Gauteng SA c/l - Coast SA c/l: 568.10 - 554.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 444.20 - 421.20
3-Jan-07
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 598.00 - 574.00
* Diesel Gauteng SA c/l - Coast SA c/l: 551.10 - 537.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 447.20 - 424.20
7-Feb-07
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 575.00 - 551.00
* Diesel Gauteng SA c/l - Coast SA c/l: 542.10 - 528.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 421.20 - 398.20
7-Mar-07
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 599.00 - 575.00
* Diesel Gauteng SA c/l - Coast SA c/l: 552.10 - 538.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 431.20 - 408.20
4-Apr-07
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 667.00 - 643.00
* Diesel Gauteng SA c/l - Coast SA c/l: 590.10 - 576.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 462.10 - 438.20
2-May-07
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 701.00 - 677.00
* Diesel Gauteng SA c/l - Coast SA c/l: 620.10 - 606.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 480.10 - 456.20
Enquiries:
Ms B Mafuna
Tel: (012) 317 8086
Cell: 082 571 4310
Issued by: Department of Minerals and Energy
25 April 2007
Source: Department of Minerals and Energy (http://www.dme.gov.za/)
