Product
Petrol (all grades): 36,000 cents per litre increase in retail price
Diesel 0,05% Sulphur: 35,000 cents per litre increase in wholesale price
Diesel 0,005% Sulphur: 36,000 cents per litre increase in wholesale price
Illuminating paraffin (wholesale): 21,000 cents per litre increase in wholesale price
Illuminating paraffin (SMNRP): 28,000 cents per litre increase in the Single Maximum National Retail price (SMNRP)
Economic factors affecting the unit over/under-recoveries for the period 31 July 2009 to 27 August 2009
During the period under review, the average international product prices of petrol, diesel and 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 31 July 2009 to 27 August 2009 was 7.9913 compared to 7.9840 during the previous period.
Single Maximum National Retail Price for Illuminating Paraffin (SMNRP) for illuminating paraffin
The Minister of Minerals and Energy has approved the implementation of a 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 September 2009 to 6 October 2009 will be 657,0 c/l compared to 629,0 c/l from 5 August 2009 to 1 September 2009, that is an increase of 28,00c/l.
Maximum LPGAS refinery gate price
The maximum refinery gate price will be R5 669.84 per metric ton (314.67 c/l) for the period 2 September 2009 to 6 October 2009.
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.
* 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.
* In order to manage a negative balance in the cumulative over/(under) recovery account (the slate), a Self-Adjusting Slate Levy Mechanism (SLM) has been implemented with effect from 7 January 2009 (the SLM is available on the website of the Department of Minerals and Energy (DME)). A slate levy will only be applicable on all petrol and diesel grades if the slate balance is negative (cumulative under recovery) by more than R250 million.
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 31/07/2009 to 27/08/2009 (cents / litre) as detailed below.
Petrol 95 ULP: (36.378)
Diesel 0,05%: (35.799)
Diesel 0,005%: (36.541)
Illuminating Paraffin: (20.842)
Cumulative positive or negative slate balances end of July 2009 (R-million)
Petrol 95 ULP: 896.686
Diesel 0,05%: 727.648
Diesel 0,005%: 727.648
Illuminating Paraffin: (91.451)
The price adjustments consist of the following elements (c/l):
Average product over/(under)-recovery rounded to the nearest full cent for price (increase) / decrease
Petrol 95 ULP: (36.000)
Diesel 0,05%: (35.000)
Diesel 0,005%: (36.000)
Illuminating Paraffin: (21.000)
Total price (increase)/decrease:
Petrol 95 ULP: (36.000)
Diesel 0,05%: (35.000)
Diesel 0,005%: (36.000)
Illuminating Paraffin: (21.000)
Report of the independent auditors
The report of the independent auditors is available on request.
Analysis of the elements that resulted in the over or under-recoveries
The over or 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: (35.982)
Diesel 0,05%: (35.410)
Diesel 0,005%: (36.148)
Illuminating Paraffin: (20.463)
Movement in Exchange Rate
Petrol 95 ULP: (0.396)
Diesel 0,05%: (0.389)
Diesel 0,005%: (0.393)
Illuminating Paraffin: (0.379)
Over/ (under)-recovery for the period 26/06/2009 to 30/07/2009
Petrol: (36.378)
Diesel 0,05%: (35.799)
Diesel 0,005%: (36.541)
Illuminating Paraffin: (20.842)
Enquiries:
Mr Bheki Khumalo
Tel: 012 679 9032
Cell: 082 773 2388
Issued by: Department of Energy
28 August 2009
