Product
Petrol: (all grades): 0.000 - No change
Diesel 0.05 percent sulphur: 10 000 cents per litre increase in retail price
Diesel 0.005 percent sulphur: 8.000 cents per litre increase in wholesale price
Illuminating paraffin (wholesale): 14.000 cents per litre increase in wholesale price
Illuminating paraffin (SMNRP): 19.000 c/l increase in the single maximum national retail price (SMNRP)
Economic factors affecting the unit over and under- recoveries for the period 2 October 2009 to 29 October 2009
During the period under review, the average international product prices of petrol, diesel and illuminating paraffin increased.
The average rand to United States dollar exchange rate strengthened when compared to the previous period. The average rand to United States dollar exchange rate for the period 02 October 2009 to 29 October 2009 was 7.4988 compared to 7.5764 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 4 November 2009 to 1 December 2009 will be 639.0 c/l compared to 620.0 c/l for the period 7 October 2009 to 3 November 2009, that is an increase of 19.00c/l.
Maximum Liquefied Petroleum Gas Safety Association (LPGAS) refinery gate price
The maximum refinery gate price will be R5 103.85 per metric ton (283.26 c/l) for the period 4 November 2009 to 1 December 2009.
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 / (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
Breakdown of price adjustments
The price adjustments under Product above are based on the following actual data:
* Average product over/ (under)-recovery, measured for the 20 days from 2 October 2009 to 29 October 2009 (cents per litre) as detailed below
Petrol 95 ULP: (0.453)
Diesel 0.05 percent: (10.038)
Diesel 0.005 percent: (8.792)
Illuminating paraffin: (13.415)
* Cumulative positive or negative slate balances end of September 2009 (R-million)
Petrol 95 ULP: 989.732
Diesel 0.05 percent: 738.077
Diesel 0.005 percent: 738.077
Illuminating paraffin: (90.038)
The price adjustments consist of the following elements
* Average product over/ (under)-recovery rounded to the nearest full cent for price increase or decrease (cents per litre)
Petrol 95 ULP: 0.000
Diesel 0.05 percent: (10.000)
Diesel 0.005 percent: (8.000)
Illuminating paraffin: (14.000)
* Total price increase or decrease (cents per litre)
Petrol 95 ULP: 0.000
Diesel 0.05 percent: (10.000)
Diesel 0.005 percent: (8.000)
Illuminating paraffin: (14.000)
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 (cents per litre)
Petrol: (4.525)
Diesel 0.05 percent: (14.206)
Diesel 0.005 percent: (12.983)
Illuminating paraffin: (17.563)
* Movement in Exchange Rate (cents per litre)
Petrol: 4.072
Diesel 0.05 percent: 4.167
Diesel 0.005 percent: 4.191
Illuminating paraffin: 4.148
* Over or under-recovery for the period 2 October 2009 to 29 October 2009
Petrol: (0.453)
Diesel 0.05 percent: (10.038)
Diesel 0.005 percent: (8.792)
Illuminating paraffin: (13.415)
Enquiries:
Mr Bheki Khumalo
Tel: 012 679 9032
Cell: 082 773 2388
Issued by: Department of Energy
30 October 2009
