Basic Fuel Price (BFP)
During the current fuel price review period (30 March 2012 to 24 April 2012), the average international crude oil prices, compared to the previous fuel price review period, decreased from USD 125.0 per barrel to around USD 121.0 per barrel. This decrease mainly culminated from (a) both the USA the UK arewilling to release oil stocks from their reserves to lower the oil price and Saudi Arabia is looking to increase production; and (b) successful discussions between Iran and the West on the Iranian nuclear programme eased pressure on international oil prices. International product prices followed the same pattern as oil prices.However, these international product price decreases were not enough to off-set the increase in international product prices in Rand-terms due to the deterioration of the Rand against the US Dollar during the current fuel price review period.
The deterioration of Rand/US Dollar exchange rate on South African fuel prices culminated in increases in the prices of fuels of about 21.0c/l whilst the increases (in RSA c/l) in international product prices were on average 9.0 c/l, 13.0 c/l and 9.0 c/l on petrol, diesel and IP respectively. The deterioration of the Rand against the US Dollar is mainly attributable to (a) the World Bank lowering forecast for China’s growth this year to 8.2% from 8.4% added to higher risk aversion; (b) improvement of USA’s economy was on course and the USA Federal Bankwill not come up with further monetary stimulus of the USA economy and as a result the Rand-value against that of the US Dollar deteriorated by some ten (10) RSA cents to the US Dollar; (c) concerns that Spain would need a monetary bailout; and (d) weak USA employment and disappointing Chinese growth (GDP) added to concerns about the global economy.
The current Slate Levy on petrol and diesel amounts to 4.38 c/l (implemented in February 2012). The Cumulative Slate Account balance of the oil industry amounted to a combined negative balance of R1.092 billion at the end of March 2012.Taking cognisance that some R100.0 million will be reimbursed to the industry from the Slate Levy Trust Fund Account in May 2012 and the Self-Adjusting Slate Levy Mechanism Rules, the current Slate Levy of 4.38 c/l will have to be increased to 8.78 c/l with effect from 2 May 2012.
Based on the fuel price information at the DoE’s disposal on 19 April 2012 and the adjustment in the Self-Adjusting Slate Levy, it is anticipated that the following fuel price increases will be implemented with effect from 2 May 2012, namely:
|
Petrol (ALL GRADES) |
28.000cents per litre increase in retail price |
|
Diesel 0.05% Sulphur |
9.400cents per litre increase in wholesale price |
|
Diesel 0.005% Sulphur |
8.400cents per litre increase in wholesale price |
|
Illuminating Paraffin (Wholesale) |
9.000cents per litre increase in wholesale price |
|
Illuminating Paraffin (SMNRP) |
|
|
Maximum Retail Price for LPGAS |
31.000 cents per kilogram increase in the maximum retail price |
Media enquiries:
Johannes Mokobane
Tel: 012 444 4612
Cell: 082 766 3674
E-mail: johannes.mokobane@energy.gov.za, mediadesk@energy.gov.za
Thandiwe Maimane
Tel: 012 444 4256
Cell: 083 645 7837
E-mail: Thandiwe.maimane@energy.gov.za, mediadesk@energy.gov.za
