Product
Petrol (all grades): 21,000 cents per litre decrease in retail price
Diesel 0,05% Sulphur: 20,000 cents per litre decrease in wholesale price
Diesel 0,005% Sulphur: 21,000 cents per litre decrease in wholesale price
Illuminating paraffin (wholesale): 14,000 cents per litre decrease in wholesale price
Illuminating paraffin (SMNRP): 19,000 cents per litre decrease in the Single Maximum National Retail price (SMNRP)
Economic factors affecting the unit over/under-recoveries for the period 26 June 2009 to 30 July 2009
During the period under review, the average international product prices of petrol, diesel and illuminating paraffin decreased.
The average Rand/US Dollar exchange rate strengthened when compared to the previous period. The average Rand/US Dollar exchange rate for the period 26 June 2009 to 30 July 2009 was 7.9840 compared to 8.1093 during the previous period.
Increase in retail margin on petrol
The Minister of Energy has approved an increase of 5,4 c/l in the retail margin of all grades of petrol with effect from 5 August 2009.
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 5 August 2009 to 1 September 2009 will be 629,0 c/l compared to 648,0 c/l from 1 July 2009 to 4 August 2009, that is a decrease of 19.00 c/l.
Maximum LPGAS refinery gate price
The maximum refinery gate price will be R5 077.22 per metric ton (281.78 c/l) for the period 5 August 2009 to 1 September 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 or under recovery, measured for the 20 days from 26/06/2009 to 30/07/2009 (cents/litre) as detailed below.
Petrol 95 ULP: 25.802
Diesel 0,05%: 19.029
Diesel 0,005%: 20.398
Illuminating Paraffin: 14.655
Cumulative positive or negative slate balances end of May 2009 (R-million)
Petrol 95 ULP: 627.628
Diesel 0,05%: 593.687
Diesel 0,005%: 539.687
Illuminating Paraffin: (101.779)
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: 26,000
Diesel 0,05%: 20.000
Diesel 0,005%: 21.000
Illuminating Paraffin: 14,000
Petrol 95 ULP:
Retail margin increase on petrol: (5.400)
Rouding: 0.400
Total price (increase)/decrease:
Petrol 95 ULP: 21,000
Diesel 0,05%: 20,000
Diesel 0,005%: 21,000
Illuminating Paraffin: 1000)
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: 19.632
Diesel 0,05%: 12.943
Diesel 0,005%: 14.265
Illuminating Paraffin: 8.535
Movement in Exchange Rate
Petrol 95 ULP: 6.170
Diesel 0,05%: 6.086
Diesel 0,005%: 6.133
Illuminating Paraffin: 6.119
Over/ (under)-recovery for the period 26/06/2009 to 30/07/2009
Petrol: 25.802
Diesel 0,05%: 19.029
Diesel 0,005%: 20.398
Illuminating Paraffin: 14.655
Enquiries:
Mr Bheki Khumalo
Tel: 012 679 9032
Cell: 082 773 2388
Issued by: Department of Energy
31 July 2009
Source: CEF (http://www.cef.org.za/)
