29 September 2006
With effect from 00h01, Wednesday, 4 October 2006, the price of fuel will be
adjusted as follows:
Product:
* Petrol 91 ULP - 51.000 cents per litre decrease in retail price
* Petrol 93 ULP & LRP - 50.000 cents per litre decrease in retail
price
* Petrol 95 ULP & LRP � 50.000 cents per litre decrease in retail
price
* Diesel 0.05% Sulphur - 34.000 cents per litre decrease in wholesale
price
* Diesel 0.005% Sulphur - 37.000 cents per litre decrease in wholesale
price
* Illuminating Paraffin (IP) - 22.000 cents per litre decrease in wholesale
price
* Illuminating Paraffin - 30.000 c/l decrease in the Single Maximum National
Retail price (SMNRP)
2. Economic factors affecting the unit over/under-recoveries for the period
1 September 2006 to 28 September 2006
During the period under review, the average international product prices of
Petrol and Diesel decreased, while 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 1
September 2006 to 28 September 2006 was 7.4347 compared to 6.9705 during the
previous period.
3. Increase in retail margin on petrol
The Minister of Minerals and Energy has approved an increase of 3.0 c/l in
the retail margin applicable on all petrol grades.
4. Increase in slate levy on petrol
Taking cognisance of the differential between the average (as calculated
over the price review period) and the daily (28/09/2006) over recoveries, the
Minister has approved that petrol prices be adjusted in line with the daily
over recovery as on 28 September 2006 in order to minimise petrol price
volatility and that this differential be accommodated in the Slate Levy of
petrol until the next fuel price adjustment to be effected in November
2006.
5. 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 4 October 2006 to 31 October 2006 will
be 628,0 c/l compared to 658,0 c/l from 6 September 2006 to 3 October 2006,
that is a decrease of 30,0 c/l.
6. 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 September 2006 to 30 September
2006 will be R4 389.92 per metric ton (243.64 c/l).
7. 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.
8. 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
01/09/2006 to 28/09/2006 (cents/litre) as detailed below:
* Petrol 95 ULP: (65.342)
* Diesel 0.05(%): (35.723)
* Diesel 0.005(%): (38.992)
* Illuminating Paraffin: (23.132)
- Cumulative positive/(negative) slate balances end of August 2006
(R-million):
* Petrol 95 ULP: (654.169)
* Diesel 0.05(%): (599.174)
* Diesel 0.005(%): (599.174)
* Illuminating Paraffin: (75.893)
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: (65.000)
* Diesel 0.05(%) c/l: (35.000)
* Diesel 0.005(%) c/l: (38.000)
* Illuminating Paraffin c/l: (23.000)
- 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)
- Increase in Slate Levy:
* Petrol 95 ULP c/l: (11.000)
- Increase in Retail Margin on petrol:
* Petrol 95 ULP c/l: (3.000)
- Total price (increase) / decrease:
* Petrol 95 ULP c/l: (50.000)
* Diesel 0.05(%) c/l: (34.000)
* Diesel 0.005(%) c/l: (37.000)
* Illuminating Paraffin c/l: (22.000)
9. Report of the Independent Auditors
The report of the independent auditors is available on request.
10. 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: (86.102)
* Diesel 0.05% c/l: (60.178)
* Diesel 0.005% c/l: (63.556)
* Illuminating Paraffin c/l: (48.092)
- Movement in Exchange Rate
* Petrol: (20.760)
* Diesel 0.05%: (24.455)
* Diesel 0.005%: (24.563)
* Illuminating Paraffin: (24.960)
Over/(under)-recovery for the period 28/07/2006 to 31/08/2006
* Petrol: (65.342)
* Diesel 0.05%: (35.723)
* Diesel 0.005%: (38.992)
* Illuminating Paraffin: (23.132)
11 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 04/10/2006 to 31/10/2006 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: 339.413
* Petrol 93 ULP & LRP c/l: 337.632
* Petrol 91 ULP c/l: 335.851
* Diesel 0.05% S c/l: 389.630
* Diesel 0.005% S c/l: 391.030
* Illuminating Paraffin c/l: 400.128
- Retail Price:
* Petrol 95 ULP c/l: 618.00
* Petrol 93 ULP & LRP c/l: 606.00
* Petrol 91 ULP c/l: 604.00
- Wholesale price:
* Diesel 0.05% S c/l: 595.10
* Diesel 0.005% S c/l: 596.50
* Illuminating Paraffin c/l: 482.20
(*) The wholesale price of diesel is regulated, but not the retail price
Statistics of price changes
(From 4 January 2006 0,05% Sulphur)
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
Issued by: Department of Minerals and Energy
29 September 2006
