Product
Petrol all grades: 18.000 cents per litre increase in retail price
Diesel 0.05 percent Sulphur: 10.000 cents per litre increase in wholesale price
Diesel 0.00 5percent Sulphur: 10.000 cents per litre increase in wholesale price
Illuminating Paraffin (Wholesale): 5.000 cents per litre increase in wholesale price
Illuminating Paraffin (SMNRP): 6.000 c/l increase in the Single Maximum National Retail price (SMNRP)
Economic factors affecting the unit over/under-recoveries for the period 31 December 2009 to 28 January 2010
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 December 2009 to 28 January 2010 was 7.4735 compared to 7.5236 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 3 February 2010 to 2 March 2010 will be 668.0 c/l compared to 662.0 c/l for the period 6 January 2010 to 2 February 2010 that is an increase of 6.00c/l.
Maximum Liquefied Petroleum Gas Safety Association (LPGAS) refinery gate price
The maximum refinery gate price will be R 5 484.74 per metric ton (304.40 c/l) for the period 3 February 2010 to 2 March 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 21 days from 31/12/2009 to 28/01/2010 (cents / litre) as detailed below
Petrol 95 ULP: (18.725)
Diesel 0.05 (percent): (10.051)
Diesel 0.005 (percent): (10.120)
Illuminating paraffin: (4.948)
Cumulative positive/ (negative) slate balances end of December 2009 (R-million) Petrol 95 ULP: 804.923
Diesel 0.05 (percent): 543.731
Diesel 0.005 (percent): 543.731
Illuminating paraffin: (101.769)
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: (18.000)
Diesel 0.05 (percent): (10.000)
Diesel 0.005 (percent): (10.000)
Illuminating paraffin: (5.000)
* Total price (increase) / decrease
Petrol 95 ULP: (18.000)
Diesel 0.05 (percent): (10.000)
Diesel 0.005 (percent): (10.000)
Illuminating paraffin: (5.000)
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: (21.641)
Diesel 0.05 percent: (12.924)
Diesel 0.005 percent: (13.009)
Illuminating Paraffin: (7.821)
Movement in Exchange Rate
Petrol: 2.916
Diesel 0.05 percent: 2.873
Diesel 0.005 percent: 2.890
Illuminating Paraffin: 2.873
Over/ (under)-recovery for the period 31 December 2009 to 28 January 2010
Petrol: (18.725)
Diesel 0.05 percent: (10.051)
Diesel 0.005 percent: (10.120)
Illuminating Paraffin: (4.948)
Enquiries:
Bheki Khumalo
Tel: 012 679 9032
Cell: 082 773 2388
Issued by: Department of Energy
31 December 2009
Source: CEF (http://www.cef.org.za/)
