March 2006
24 February 2006
1. Adjustment to the fuel price: Wednesday, 1 March 2006
With effect from 00h01, Wednesday, 1 March 2006, the price of fuel will be
adjusted as follows:
Product:
* Petrol (All Grades) 11.000 cents per litre decrease in retail price
* Diesel 0.3% Sulphur 3.000 cents per litre decrease in wholesale price
* Diesel 0.05% Sulphur 0.000 No Change
* Diesel 0.005% Sulphur 2.000 cents per litre decrease in wholesale price
* Illuminating Paraffin 4.000 cents per litre increase in wholesale price
* Illuminating Paraffin 5.000 c/l increase in the Single Maximum National
Retail price (SMNRP)
2. Economic factors affecting the unit over/under-recoveries for the period
27 January 2006 to 23 February 2006
During the period under review, the average international product prices of
Petrol, Diesel decreased whilst Illuminating Paraffin increased.
The average Rand/US Dollar exchange rate strengthened when compared to the
previous period. The average Rand/US Dollar exchange rate for the period 27
January 2006 to 23 February 2006 was 6.1373 compared to 6.1408 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 1 March 2006 to 4 April 2006 will be
528,0 c/l compared to 523,0 c/l from 1 February 2006 to 28 February 2006, that
is an increase of 5,0 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 February 2006 to 28 February 2006
will be R 3 523.42 per metric ton (195.55 c/l).
5. Price Adjustment
In terms of the agreed mechanism:
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
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
27/01/2006 to 23/02/2006 (cents / litre) as detailed below.
* Petrol 95 ULP: 12.120
* Diesel 0,3(%): 4.011
* Diesel 0.05(%): 1.407
* Diesel 0.005(%): 3.986
* Illuminating Paraffin: (2.455)
- Cumulative positive/negative) slate balances end of January 2006
(R-million)
* Petrol 95 ULP: (111.067)
* Diesel 0,3(%):(412.809)
* Diesel 0.05(%):(412.809)
* Diesel 0.005(%):(412.809)
* Illuminating Paraffin: (43.308)
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: 12.000
* Diesel 0,3(%)c/l: 4.000
* Diesel 0.05(%)c/l: 1.000
* Diesel 0.005(%)c/l: 3.000
* Illuminating Paraffin c/l: (3.000)
* One cent / litre added or subtracted depending on cumulative slate balance
in terms of additional mechanism
* Petrol 95 ULP c/l: (1.000)
* Diesel 0,3(%)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: 11.000
* Diesel 0,3(%)c/l: 3.000
* Diesel 0.05(%)c/l: 0.000
* Diesel 0.005(%)c/l: 2.000
* Illuminating Paraffin c/l: (4.000)
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 95 ULP c/l: 11.966
* Diesel 0,3(%)c/l: 3.844
* Diesel 0.05(%)c/l: 1.231
* Diesel 0.005(%)c/l: 3.809
* Illuminating Paraffin c/l: (2.635)
Movement in Exchange Rate
* Petrol 95 ULP c/l: 0.154
* Diesel 0,3(%)c/l: 0.166
* Diesel 0.05(%)c/l: 0.175
* Diesel 0.005(%)c/l: 0.178
* Illuminating Paraffin c/l: 0.179
Over/(under)-recovery for the period 27/01/2006 to 23/02/2006
* Petrol 95 ULP c/l: 12.120
* Diesel 0,3(%)c/l: 4.011
* Diesel 0.05(%)c/l: 1.407
* Diesel 0.005(%)c/l: 3.986
* Illuminating Paraffin c/l: (2.455)
Enquiries: Mr H Baak
Tel: (012) 317 8221
Cell: 082 828 3923
Issued by: Department of Minerals and Energy
24 February 2006
