Product:
Petrol (all grades) 27.000 cents per litre increase in wholesale price
Diesel 0.05 percent Sulphur 25.000 cents per litre increase in wholesale price
Diesel 0.00 5percent Sulphur 26.000 cents per litre increase in wholesale price
Illuminating Paraffin (Wholesale) 29.000 cents per litre increase in wholesale price
Illuminating Paraffin (SMNRP) 39.000 c/l increase in the Single Maximum National Retail price (SMNRP)
Economic factors affecting the unit over/under-recoveries for the period 30 October 2009 to 26 November 2009
During the period under review, the average international product prices of petrol, diesel and illuminating paraffin increased.
The average rand/United States (US) dollar exchange rate weakened when compared to the previous period. The average rand/US dollar exchange rate for the period 30 October 2009 to 26 November 2009 was 7.5722 compared to 7.4988 during the previous period.
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 for the period 2 December 2009 to 5 January 2010 will be 678.0 c/l compared to 639.0 c/l for the period 4 November 2009 to 1 December 2009 that is an increase of 39.00c/l.
Maximum Liquefied Petroleum Gas Safety Association (LPGAS) refinery gate price
The maximum refinery gate price will be R5 349.53 per metric ton (296.89 c/l) for the period 2 December 2009 to 5 January 2010.
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) was implemented with effect from 7 January 2009 (the SLM is available on the website of the Department of Minerals and Energy at http://www.dme.gov.za). 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 R250.0 million
Breakdown of price adjustment
The price adjustments are based on the following actual data
* Average product over/ (under)recovery, measured for the 20 days from 30/10/2009 to 26/11/2009 (cents / litre) as detailed below
Petrol 95 ULP: (27.282)
Diesel 0.05 (percent): (25.439)
Diesel 0.005 (percent): (26.177)
Illuminating paraffin: (28.642)
Cumulative positive/ (negative) slate balances end of October 2009 (R-million)
Petrol 95 ULP: 975.559
Diesel 0.05(percent): 642.755
Diesel 0.005(percent): 642.755
Illuminating paraffin: (95.968)
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: (27.000)
Diesel 0.05 (percent): (25.000)
Diesel 0.005 (percent): (26.000)
Illuminating paraffin: (29.000)
* Total price (increase) / decrease
Petrol 95 ULP: (27.000)
Diesel 0.05 (percent): (25.000)
Diesel 0.005 (percent): (26.000)
Illuminating paraffin: (29.000)
Report of the independent auditors
The report of the independent auditors is available on request.
Analysis of the elements that resulted in the over/ (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: (23.274)
Diesel 0.05 percent: (21.358)
Diesel 0.005 percent: (22.073)
Illuminating Paraffin: (24.541)
Movement in Exchange Rate
Petrol: (4.008)
Diesel 0.05 percent: (4.080)
Diesel 0.005 percent: (4.104)
Illuminating Paraffin: (4.101)
Over/ (under)-recovery for the period 30 October 2009 to
26 November 2009
Petrol: (27.282)
Diesel 0.05 percent: (25.439)
Diesel 0.005 percent: (26.177)
Illuminating Paraffin: (28.642)
Enquiries:
Bheki Khumalo
Tel: 012 679 9032
Cell: 082 773 2388
Issued by: Department of Energy
27 November 2009
