The next fuel price adjustments will be effected on Wednesday, 3 July 2013. The current fuel price review period closed on 27 June 2013. The reasons for the fuel prices increases are:
1. Crude oil prices
During the current fuel price review period (31 May 2013 to 27 June 2013), the Brent crude oil prices increased on average by 1.0 USD/barrel, therefore the impact of the crude oil price on the Basic Fuel Price (BFP) was minimal.
2. International product prices
2.1 The international price of refined petroleum products increased on average compared to the previous price review period. The international product prices increased by 27.0 c/l and 17 c/l on petrol and diesel respectively. The high product prices could be attributed, but not limited, to the following;
- High demand of products in Europe due to the shortages caused by the refinery maintenance programs and disruptions in deliveries as a result of floodwaters; and
- Strong demand for diesel and petrol in Turkey and North Africa, respectively, as a result of inventory stocks build-up.
- A domestic shortfall of diesel in India,
3. The Rand / Dollar exchange rate
During the period under review (31 May 2013 to 27 June 2013), the Rand weakened sharply against the USD and contributed to an increase in the BFP by at least 57.0 cents per litre. The weaker Rand is mainly attributed to the slowdown in the economic growth in emerging markets and the expected slump in the demand of commodities. The Rand’s vulnerability was also due to negative sentiments emanating from concerns over anticipated labour disputes and market expectations of industrial actions.
4. Adjustment to the Slate Levy on petrol and diesel
In line with the Self-Adjusting Slate Levy Mechanism, the Slate Levy on petrol and diesel will increase from 4.38 c/l to 6.58 c/l and will be implemented into the price structures of petrol and diesel with effect from 3 July 2013.
5. Anticipated fuel price increases
Based on the average unit over- and under- recovery and the implementation of a Slate Levy adjustment of 2.2 c/l on petrol and diesel, the following fuel price changes will be implemented on 3 July 2013, namely:
- Petrol (95 ULP and LRP): 84.0 c/l, increase;
- Petrol (93 ULP and LRP): 84.0 c/l, increase;
- Diesel (0.05% Sulphur): 78.20 c/l, increase;
- Diesel (0.005% Sulphur): 78.20 c/l, increase;
- Illuminating Paraffin (IP) wholesale: 75.0 c/l, increase;
- Single Maximum National Retail price (SMNRP) for IP: 100.0 c/l, increase; and
- Maximum Retail Price for LPGas: 129.0 c/kg, increase
Enquiries:
Johannes Mokobane:
Email: johannes.mokobane@energy.gov.za
Tel: 012 406 7481
Cell: 082 766 3674
Dumisane Mahlangu
Tel : 012 4067471
Email : dumisane.mahlangu@energy.gov.za
Genera media enquiries: mediadesk@energy.gov.za
