27 July 2007
Product:
* Petrol (ALL GRADES) 15.000 cents per litre decrease in retail price
* Diesel 0.05% Sulphur 15.000 cents per litre increase in wholesale price
* Diesel 0.005% Sulphur 15.000 cents per litre increase in wholesale
price
* Illuminating Paraffin 7.000 cents per litre increase in wholesale price
Illuminating Paraffin 10.000 c/l increase in the Single Maximum National Retail
price (SMNRP)
2. Economic factors affecting the unit over/under-recoveries for the
period
29 June 2007 to 26 July 2007
During the period under review, the average international product prices of
Petrol decreased whilst 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 29 June 2007 to 26 July
2007 was 6.9782 compared to 7.1948 during the previous period.
3. Single Maximum National Retail Price for Illuminating Paraffin
The Minister of Minerals and Energy has approved the implementation of a
Single Maximum National Retail Price for Illuminating Paraffin with effect from
2 April 2003. The Single Maximum National Retail Price for Illuminating
Paraffin will change on a monthly basis from the first Wednesday of each month
and will also be promulgated in the Government Gazette. The Single Maximum
National Retail Price with effect from 1 August 2007 to 4 September 2007 will
be 661,0 c/l compared to 651,0 c/l from 4 July 2007 to 31 July 2007, that is an
increase of 10,0 c/l.
4. Liquid Petroleum Gas (LPGAS)
In terms of the Government Notice No R1 029 dated 31 July 2002 the maximum
refinery gate price of LPGAS for the period 1 July 2007 to 31 July 2007 will be
R 5 437.59 per metric ton (301.78 c/l).
5. Price Adjustment
In terms of the agreed mechanism:
(a) 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
(b) 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.
With effect from 3 March 1999 an additional mechanism has been approved by
the Minister of Minerals and Energy, intended to assist in management of
cumulative slate balances and which operates as follows:
Should the cumulative individual slate balances (positive or negative)
exceed R10 million for petrol, R5 million for diesel, or R1 million for
illuminating paraffin, an additional 1.0 cent per litre will be added or
subtracted to the price as determined in (a) and (b) above, depending on the
status of the individual slate balances."
6. Breakdown of price adjustment
* Petrol 95 ULP
* Diesel 0.05(%)
* Diesel 0.005(%)
* Illuminating Paraffin: The price adjustments in one above are based on the
following actual data:
- Average product over or under)-recovery, measured for the 20 days from
29/06/2007 to 26/07/2007 (c/l) as detailed below.
* Petrol (16.571)
* Diesel (13.760)
* Diesel (13.703)
* Illuminating Paraffin (5.148)
Cumulative positive/(negative) slate balances end of June 2007
(R-million)
* Petrol (599.281)
* Diesel (199.542)
* Diesel (199.542)
* Illuminating Paraffin (40.063)
The price adjustments consist of the following elements:
Average product over/(under)-recovery rounded to the nearest full cent for
price (increase)/decrease:
Petrol (16.000)
Diesel (14.000)
Diesel (14.000)
Illuminating Paraffin (6.000)
- One cent/litre added or subtracted depending on cumulative slate balance
in terms of additional mechanism
Petrol (1.000)
Diesel (1.000)
Diesel (14.000)
Illuminating Paraffin (1.000)(1.000)
- Total price (increase)/decrease
Petrol (15.000)
Diesel (15.000)
Diesel (15.000)
Illuminating Paraffin (7.000)
7. Report of the independent auditors
The report of the independent auditors is available on request.
8. Analysis of the elements that resulted in the
over/(under)-recoveries
The over/(under)-recoveries for the period under review
Petrol 0.05% c/l
* Diesel 0.005% c/l
* Diesel c/l
* Illuminating Paraffin c/l
Movements in external factors
- Movement in International Product Prices
Petrol 3.823
Diesel (27.191)
Diesel: (27.237)
Illuminating Paraffin (18.144)
Movement in Exchange Rate
Petrol 12.748
Diesel 13.431
Diesel 13.534
Illuminating Paraffin 12.996
Over/(under)-recovery for the period 29/06/2007 to 26/07/2007
Petrol (16.571)
Diesel (13.760)
Diesel (13.703)
Illuminating Paraffin (5.148)
10. Annexure
The annexure attached contains details of the composition of product prices
as well as history of the price changes.
Annexure 1
Composition of the retail price of petrol and the wholesale prices for
diesel and IP in Gauteng for the period 01/08/2007 to 04/09/2007 will be as
follows:
Wholesale margin:
* Petrol 95 ULP c/l 39.487
* Petrol 93 ULP & LRP c/l 39.268
* Petrol 91 ULP c/l 39.049
* Diesel 0.05% S c/l 39.260
* Diesel 0.005% S c/l 39.260
* Illuminating Paraffin c/l 39.472
- Service cost recoveries:
Petrol 7.000
Petrol 7.000
Petrol 7.000
Diesel 7.000
Diesel 7.000
Illuminating Paraffin 14.400
- Storage, handling and delivery costs:
Petrol 7.000
Petrol 7.000
Petrol 7.000
Diesel 7.000
Diesel 7.000
Illuminating Paraffin 7.000
-Distribution cost:
Petrol 0
Petrol 0
Petrol 0
Diesel 0
Diesel 0
Illuminating Paraffin 7.400
-Dealers margin:
Petrol 48.000
Petrol 48.000
Petrol 48.000
Diesel 0
Diesel 0
Illuminating Paraffin 0
-Zone differential in Gauteng:
Petrol 900
Petrol 13.900
Petrol 13.900
Diesel 13.900
Diesel 13.900
Illuminating Paraffin 24.100
-IP Tracer levy:
Petrol 0
Petrol 0
Petrol 0
Diesel 0.010
Diesel 0.010
Illuminating Paraffin 0
-Fuel levy:
Petrol 121.000
Petrol 121.000
Petrol 121.000
Diesel 105.000
Diesel 105.000
Illuminating Paraffin 0
-Customs and excise duty:
Petrol 4.000
Petrol 4.000
Petrol 4.000
Diesel 4.000
Diesel 4.000
Illuminating Paraffin 0
- Road Accident Fund (RAF) levy:
Petrol 41.500
Petrol 41.500
Petrol 41.500
Diesel 41.500
Diesel 41.500
Illuminating Paraffin 0
- Petroleum Pipelines levy:
Petrol 0.190
Petrol 0.190
Petrol 0.190
Diesel 0.190
Diesel 0.190
Illuminating Paraffin 0
-Slate levy:
Petrol 4.810
Petrol 4.810
Petrol 4.810
Diesel 4.810
Diesel 4.810
Illuminating Paraffin 5.000
- DSML:
Petrol 10.000
Petrol 0.000
Petrol 0.000
Diesel 0.000
Diesel 0.000
Illuminating Paraffin 0.000
- Equalisation Fund Levy:
Petrol 0.000
Petrol 0.000
Petrol 0.000
Diesel 0.000
Diesel 0.000
Illuminating Paraffin 0.000
- Sub-total
Petrol 289.887
Petrol 279.668
Petrol 279.449
Diesel 215.670
Diesel 215.670
Illuminating Paraffin 82.972
- Contribution to the basic fuel price:
Petrol 411.113
Petrol 408.332
Petrol 405.551
Diesel 435.630
Diesel 439.030
Illuminating Paraffin 423.128
- Retail Price
Petrol 701.00
Diesel 688.00
Illuminating Paraffin 685.00
- Wholesale price:
Petrol 651.30
Diesel 654.70
Illuminating Paraffin 506.10
(*) The wholesale price of diesel is regulated, but not the retail price
Statistics of price changes
7-Dec-05:
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 545.00 - 532.00
* Diesel: Gauteng SA c/l - Coast SA c/l: 529.80 - 516.50
* Illuminating Paraffin: Gauteng SA c/l - Coast SA c/l: 400.60 - 378.20
4-Jan-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 549.00 - 526.00
* Diesel: Gauteng SA c/l - Coast SA c/l: 517.80 - 504.50
* Illuminating Paraffin: Gauteng SA c/l - Coast SA c/l: 398.60 - 376.20
1-Feb-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 563.00 - 540.00
* Diesel: Gauteng SA c/l - Coast SA c/l: 517.80 - 504.50
* Illuminating Paraffin: Gauteng SA c/l - Coast SA c/l: 402.60 - 380.20
1-Mar-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 552.00 - 529.00
* Diesel: Gauteng SA c/l - Coast SA c/l: 517.80 - 504.50
* Illuminating Paraffin: Gauteng SA c/l - Coast SA c/l: 406.60 - 384.20
5-Apr-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 573.00 - 549.00
* Diesel: Gauteng SA c/l - Coast SA c/l: 544.10 - 530.50
* Illuminating Paraffin: Gauteng SA c/l - Coast SA c/l: 412.20 - 389.20
3-May-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 612.00 - 588.00
* Diesel: Gauteng SA c/l - Coast SA c/l: 571.10 - 557.50
* Illuminating Paraffin: Gauteng SA c/l - Coast SA c/l: 432.20 - 409.20
7-Jun-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 648.00 - 624.00
* Diesel: Gauteng SA c/l - Coast SA c/l: 600.10 - 586.50
* Illuminating Paraffin: Gauteng SA c/l - Coast SA c/l: 452.20 - 429.20
5-Jul-06 * Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 673.00 -
649.00
* Diesel: Gauteng SA c/l - Coast SA c/l: 632.10 - 618.50
* Illuminating Paraffin: Gauteng SA c/l - Coast SA c/l: 488.20 - 465.20
2-Aug-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 704.00 - 680.00
* Diesel: Gauteng SA c/l - Coast SA c/l: 654.10 - 640.50
* Illuminating Paraffin: Gauteng SA c/l - Coast SA c/l: 509.20 - 486.20
6-Sep-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 668.00 - 644.00
* Diesel Gauteng SA c/l - Coast SA c/l: 629.10 - 615.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 504.20 - 481.20
4-Oct-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 618.00 - 594.00
* Diesel Gauteng SA c/l - Coast SA c/l: 595.10 - 581.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 482.20 - 459.20
1-Nov-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 597.00 - 573.00
* Diesel Gauteng SA c/l - Coast SA c/l: 593.10 - 579.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 469.20 - 446.20
6-Dec-06
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 590.00 - 566.00
* Diesel Gauteng SA c/l - Coast SA c/l: 568.10 - 554.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 444.20 - 421.20
3-Jan-07
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 598.00 - 574.00
* Diesel Gauteng SA c/l - Coast SA c/l: 551.10 - 537.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 447.20 - 424.20
7-Feb-07
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 575.00 - 551.00
* Diesel Gauteng SA c/l - Coast SA c/l: 542.10 - 528.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 421.20 - 398.20
7-Mar-07
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 599.00 - 575.00
* Diesel Gauteng SA c/l - Coast SA c/l: 552.10 - 538.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 431.20 - 408.20
4-Apr-07
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 667.00 - 643.00
* Diesel Gauteng SA c/l - Coast SA c/l: 590.10 - 576.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 462.10 - 438.20
2-May-07
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 701.00 - 677.00
* Diesel Gauteng SA c/l - Coast SA c/l: 620.10 - 606.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 480.10 - 456.20
6-June-07
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 724.00 - 700.00
* Diesel Gauteng SA c/l - Coast SA c/l: 625.30 - 611.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 482.10 - 458.20
4-Jul-07
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 716.00 - 692.00
* Diesel Gauteng SA c/l - Coast SA c/l: 636.30 - 622.50
* Illuminating * Paraffin Gauteng SA c/l - Coast SA c/l: 499.10 - 475.20
1-Aug-07
Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l: 701.00 - 677.00
* Diesel Gauteng SA c/l - Coast SA c/l: 651.30 - 637.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 506.10 - 482.20
Issued by: Department of Minerals and Energy
27 July 2007
