April 2006
31 March 2006
1. Adjustment to the fuel price: Wednesday, 5 April 2006
With effect from 00h01, Wednesday, 5 April 2006, the price of fuel will be
adjusted as follows:
Product:
* Petrol 91 ULP - 24.000 cents per litre increase in retail price
* Petrol 93 ULP & LRP - 22.000 cents per litre increase in retail
price
* Petrol 95 ULP & LRP - 21.000 cents per litre increase in retail
price
* Diesel 0.05% Sulphur -26.300 cents per litre increase in wholesale
price
* Diesel 0.005% Sulphur - 25.300 cents per litre increase in wholesale
price
* Illuminating Paraffin - 5.600 cents per litre increase in wholesale
price
* Illuminating Paraffin - 8.000 c/l increase in the Single Maximum National
Retail price (SMNRP)
2. Economic factors affecting the unit over/under-recoveries for the period
24 February 2006 to 30 March 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 24
February 2006 to 30 March 2006 was 6.2600 compared to 6.1373 during the
previous period.
3. Retail margin on petrol
The Minister of Minerals and Energy has approved an increase of 0,3 c/l in
the retail margin applicable on all grades of petrol. A retail margin of 43,9
c/l will become effective on 5 April 2006.
4. Transport tariff and cargo dues increases
The Minister of Minerals and Energy has approved increases in road, rail and
pipeline transport tariffs, as well as in cargo dues (wharfage). These new
transport tariffs and cargo dues will become effective on 5 April 2006. The new
transport tariffs applicable in the 55 fuel pricing zones from 5 April 2006 are
available on the website (http://www.dme.gov.za) of the Department of
Minerals and Energy. The increases in transport tariffs will differ from one
fuel pricing zone to the other. For example, at the coast no transport tariff
increases will be implemented. In Gauteng (zone 9C), petrol and diesel
transport tariffs will increase by 0,3 c/l and that for illuminating paraffin
by 0,6 c/l.
5. Road Accident Fund levy
The Minister of Finance announced, in his Budget Speech on 15 February 2006,
that the Road Accident Fund Levy applicable on petrol and diesel would be
increased by 5,0 c/l from 31,5 c/l to 36,5 c/l with effect from 5 April
2006.
6. Cumulative over/under recovery account (The SLATE) Levy
The Minister of Minerals and Energy has approved that the Slate levy of 15,0
c/l currently applicable on petrol, diesel and illuminating paraffin be reduced
by 10,0 c/l to 5.0 c/l with effect from 5 April 2006.
7. Diesel (0,3 %)
The 0,3% diesel grade will not be marketed from 1 April 2006 and
consequently the relevant pricing information thereof will discontinue as
well.
8. 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 5 April 2006 to 2 May 2006 will be 536,0
c/l compared to 528,0 c/l from 1 March 2006 to 4 April 2006, that is an
increase of 8,0 c/l.
9. 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 March 2006 to 31 March 2006 will
be R 3 956.44 per metric ton (219.58 c/l).
10. 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.
11. 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 21 days from
24/02/2006 to 30/03/2006 (cents/litre) as detailed below:
* Petrol 95 ULP: (26.449)
* Diesel 0.05(%): (29.147)
* Diesel 0.005(%): (28.100)
* Illuminating Paraffin: (13.418)
The price adjustments consist of the following elements:
- Increase in Retail Margin on Petrol
* Petrol 95 ULP c/l: (0.300)
* Diesel 0.05(%) c/l: (0.000)
* Diesel 0.005(%) c/l: (0.000)
* Illuminating Paraffin c/l: 0.000
- Increase in Transport Cost
* Petrol 95 ULP c/l: (0.300)
* Diesel 0.05(%) c/l: (0.300)
* Diesel 0.005(%) c/l: (0.300)
* Illuminating Paraffin c/l: (0.600)
- Increase in Road Accident Fund Levy
* Petrol 95 ULP c/l: (5.000)
* Diesel 0.05(%) c/l: (5.000)
* Diesel 0.005(%) c/l: (5.000)
* Illuminating Paraffin c/l: 0.000
- Decrease in Slate Levy
* Petrol 95 ULP c/l: 10.000
* Diesel 0.05(%) c/l: 10.000
* Diesel 0.005(%) c/l: 10.000
* Illuminating Paraffin c/l: 10.000
- 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)
- Rounding
* Petrol 95 ULP c/l: (0.400)
Total price (increase)/decrease
* Petrol 95 ULP: (21.000)
* Diesel 0.05(%): (26.300)
* Diesel 0.005(%): (25.300)
* Illuminating Paraffin: (5.600)
12. Report of the Independent Auditors
The report of the independent auditors is available on request.
13. 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 95 ULP: (20.573)
* Diesel 0.05(%): (22.546)
* Diesel 0.005(%): (21.429)
* Illuminating Paraffin: (6.988)
- Movement in Exchange Rate
* Petrol 95 ULP: (5.876)
* Diesel 0.05(%): (6.601)
* Diesel 0.005(%): (6.672)
* Illuminating Paraffin: (6.430)
Over/(under)-recovery for the period 24/02/2006 to 30/03/2006
* Petrol 95 ULP: (26.449)
* Diesel 0.05(%): (29.147)
* Diesel 0.005(%): (28.100)
* Illuminating Paraffin: (13.418)
Contact: Ms Yvonne Mfolo
Tel: (012) 317 8086
Cell: 082 459 6862
Issued by: Department of Minerals and Energy
31 March 2006
