1. Product
* Petrol (all grades): 6.000 cents per litre increase in retail price
* Diesel 0.05 percent sulphur: 4.000 cents per litre increase in wholesale price
* Diesel 0.005 percent sulphur: 4.000 cents per litre increase in wholesale price
* Illuminating paraffin (wholesale): 2.000 cents per litre decrease in wholesale price
* Illuminating paraffin (SMNRP): 2.000 cents per litre decrease in the single maximum national retail price (SMNRP)
2. Economic factors affecting the unit over and under recoveries for the period 29 January 2010 to 25 February 2010.
During the period under review, the average international product prices of petrol, diesel and illuminating paraffin decreased.
The average rand to United States dollar exchange rate weakened compared to the previous period. The average rand to United States dollar exchange rate for the period 29 January 2010 to 25 February 2010 was 7.6902 compared to 7.4735 during the previous period.
3. Single maximum national retail price for illuminating paraffin (SMNRP)
The single maximum national retail price for illuminating paraffin changes on a monthly basis on the first Wednesday of each month and is promulgated in the Government Gazette. The single maximum national retail price with effect from 3 March 2010 to 6 April 2010 will be 666.0 cents per litre compared to 668.0 cents per litre for the period 3 February 2010 to 2 March 2010, which is a decrease of 2.00 cents per litre.
4. Maximum Liquefied Petroleum Gas Safety Association (LPGAS) refinery gate price
The maximum refinery gate price will be R5 508.21 per metric ton (305.70 cents per litre) for the period 3 March 2010 to 6 April 2010.
5. Price adjustments
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
* In order to manage a negative balance in the cumulative over or under-recovery account (the Slate), a self-adjusting slate levy mechanism (SLM) was implemented with effect from 7 January 2009 (the SLM is available on the website of the Department of Minerals and Energy). 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
6. Breakdown of price adjustments
The price adjustments in (one) above are based on the following actual data:
* Average product over/ (under)-recovery, measured for the 20 days from 29 January 2010 to 25 February 2010 (cents per litre) as detailed below
Petrol 95 ULP: (6.5757)
Diesel 0.05 percent: (4.016)
Diesel 0.005 percent: (4.508)
Illuminating paraffin: 2.084
* Cumulative positive or (negative) slate balances end of December 2009 (R-million)
Petrol 95 ULP: 629.758
Diesel 0.05 percent: 464.459
Diesel 0.005 percent: 464.459
Illuminating paraffin: (103.716)
The price adjustments consist of the following elements:
* Average product over or (under)-recovery rounded to the nearest full cent for price (increase) or decrease
Petrol 95 ULP: (6.000) cents per litre
Diesel 0.05 percent: (4.000) cents per litre
Diesel 0.005 percent: (4.000) cents per litre
Illuminating paraffin: 2.000 cents per litre
Total price (increase) or decrease:
Petrol 95 ULP: (6.000) cents per litre
Diesel 0.05 percent: (4.000) cents per litre
Diesel 0.005 percent: (4.000) cents per litre
Illuminating paraffin: 2.000 cents per litre
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 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: 5.499 cents per litre
Diesel 0.05 percent: 7.824 cents per litre
Diesel 0.005 percent: 7.414 cents per litre
Illuminating paraffin: 13.788 cents per litre
Movement in exchange rate:
Petrol: (12.074) cents per litre
Diesel 0.05 percent: (11.840) cents per litre
Diesel 0.005 percent: (11.922) cents per litre
Illuminating paraffin: (11.704) cents per litre
* Over or under-recovery for the period 29 January 2010 to 25 February 2010:
Petrol: (6.575) cents per litre
Diesel 0.05 percent: (4.016) cents per litre
Diesel 0.005 percent: (4.508) cents per litre
Illuminating paraffin: 2.084 cents per litre
9. 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 3 March 2010 to 6 April 2010 will be as follows:
* Wholesale margin
Petrol 95 ULP: 51.087 cents per litre
Petrol 93 ULP and LRP: 50.868 cents per litre
Diesel 0.05 percent S: 50.860 cents per litre
Diesel 0.005 percent S: 50.860 cents per litre
Illuminating paraffin: 51.072 cents per litre
* Service cost recoveries
Petrol 95 ULP: 10.800 cents per litre
Petrol 93 ULP and LRP: 10.800 cents per litre
Diesel 0.05 percent S: 10.800 cents per litre
Diesel 0.005 percent S: 10.800 cents per litre
Illuminating paraffin: 18.200 cents per litre
* Storage handling and delivery costs
Petrol 95 ULP: 10.800 cents per litre
Petrol 93 ULP and LRP: 10.800 cents per litre
Diesel 0.05 percent S: 10.800 cents per litre
Diesel 0.005 percent S: 10.800 cents per litre
Illuminating paraffin: 10.800 cents per litre
* Distribution cost
Petrol 95 ULP: 0 cents per litre
Petrol 93 ULP and LRP: 0 cents per litre
Diesel 0.05 percent S: 0 cents per litre
Diesel 0.005 percent S: 0 cents per litre
Illuminating paraffin: 7.400 cents per litre
* Dealers’ margin
Petrol 95 ULP: 72.700 cents per litre
Petrol 93 ULP and LRP: 72.700 cents per litre
Diesel 0.05 percent S: 0 cents per litre
Diesel 0.005 percent S: 0 cents per litre
Illuminating paraffin: 0 cents per litre
* Zone differential in Gauteng
Petrol 95 ULP: 14.400 cents per litre
Petrol 93 ULP and LRP: 14.400 cents per litre
Diesel 0.05 percent S: 14.400 cents per litre
Diesel 0.005 percent S: 14.400 cents per litre
Illuminating paraffin: 29.800 cents per litre
* IP tracer levy
Petrol 95 ULP: 0 cents per litre
Petrol 93 ULP and LRP: 0 cents per litre
Diesel 0.05 percent S: 0.010 cents per litre
Diesel 0.005 percent S: 0.010 cents per litre
Illuminating paraffin: 0 cents per litre
* Fuel levy
Petrol 95 ULP: 150.000 cents per litre
Petrol 93 ULP and LRP: 150.000 cents per litre
Diesel 0.05 percent S: 135.000 cents per litre
Diesel 0.005 percent S: 135.000 cents per litre
Illuminating paraffin: 0 cents per litre
* Customs and excise duty
Petrol 95 ULP: 4.000 cents per litre
Petrol 93 ULP and LRP: 4.000 cents per litre
Diesel 0.05 percent S: 4.000 cents per litre
Diesel 0.005 percent S: 4.000 cents per litre
Illuminating paraffin: 0
* Road Accident Fund (RAF) levy
Petrol 95 ULP: 64.000 cents per litre
Petrol 93 ULP and LRP: 64.000 cents per litre
Diesel 0.05 percent S: 64.000 cents per litre
Diesel 0.005 percent S: 64.000 cents per litre
Illuminating paraffin: 0 cents per litre
* Petroleum products levy
Petrol 95 ULP: 0.150 cents per litre
Petrol 93 ULP and LRP: 0.150 cents per litre
Diesel 0.05 percent S: 0.150 cents per litre
Diesel 0.005 percent S: 0.150 cents per litre
Illuminating paraffin: 0 cents per litre
* Slate levy
Petrol 95 ULP: 0 cents per litre
Petrol 93 ULP and LRP: 0 cents per litre
Diesel 0.05 percent S: 0 cents per litre
Diesel 0.005 percent S: 0 cents per litre
Illuminating paraffin: 0 cents per litre
* Directory Services Markup language (DSML)
Petrol 95 ULP: 10.000 cents per litre
Petrol 93 ULP and LRP: 0 cents per litre
Diesel 0.05 percent S: 0 cents per litre
Diesel 0.005 percent S: 0 cents per litre
Illuminating paraffin: 0 cents per litre
* Equalisation fund levy
Petrol 95 ULP: 0 cents per litre
Petrol 93 ULP and LRP: 0 cents per litre
Diesel 0.05 percent S: 0 cents per litre
Diesel 0.005 percent S: 0 cents per litre
Illuminating paraffin: 0 cents per litre
Incremental inland transport:
* Recovery levy
Petrol 95 ULP: 3.000 cents per litre
Petrol 93 ULP and LRP: 3.000 cents per litre
Diesel 0.05 percent S: 3.000 cents per litre
Diesel 0.005 percent S: 3.000 cents per litre
* Pump rounding
Petrol 95 ULP: (0.300) cents per litre
Petrol 93 ULP and LRP: (0.300) cents per litre
* Sub-total
Petrol 95 ULP: 379.437 cents per litre
Petrol 93 ULP and LRP: 369.218 cents per litre
Diesel 0.05 percent S: 281.820 cents per litre
Diesel 0.005 percent S: 281.820 cents per litre
Illuminating paraffin: 99.072 cents per litre
* Contribution to basic fuel price
Petrol 95 ULP: 430.563 cents per litre
Petrol 93 ULP and LRP: 421.782 cents per litre
* Retail price
Petrol 95 ULP: 810 cents per litre
Petrol 93 ULP and LRP: 791 cents per litre
* Wholesale price
Diesel 0.05 percent S: 703.45 cents per litre
Diesel 0.005 percent S: 705.85 cents per litre
Illuminating paraffin: 515.20 cents per litre
Issued by: Department of Energy
26 February 2010
Source: Department of Energy (http://www.dme.gov.za/)
