31 August 2007
Product:
* Petrol (ALL GRADES) 10.000 cents per litre decrease in retail price
* Diesel 0.05% Sulphur 5.000 cents per litre increase in wholesale price
* Diesel 0.005% Sulphur 5.000 cents per litre increase in wholesale price
*Illuminating Paraffin (Wholesale) 0.000
* No Change Illuminating Paraffin (SMNRP) 0.000
Economic factors affecting the unit over/under-recoveries for the period 27
July 2007 to 30 August 2007
During the period under review, the average international product prices of
Petrol, Diesel and Illuminating Paraffin decreased. The average Rand/US Dollar
exchange rate weakened when compared to the previous period. The average
Rand/US Dollar exchange rate for the period 27 July 2007 to 30 August 2007 was
7.2356 compared to 6.9782 during the previous period.
Increase in retail margin on petrol
The Minister of Minerals and Energy has approved that the retail margin on
petrol be increased by 11.7 c/l with effect from Wednesday, 5 September
2007.
The increase of 11.7 c/l in the petrol retail margin makes provision
for:
a) The implementation of a Minimum Living Level (MLL) wage for pump attendants.
To finance the new minimum wages for pump attendants an increase of 8.4 c/l in
the retail margin on petrol is required.
b) An increase of 3.3. c/l to accommodate the under recovery in the retail
margin as concluded by the Small Business Advisory Bureau of the North-West
University in respect of an investigation into the driveway profitability of
the service station industry for the period March 2006 to February 2007.
Single Maximum National Retail Price for Illuminating Paraffin (SMNRP)
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 5 September 2007 to 2 October 2007 will
be 661,0 c/l compared to 661,0 c/l from 1 August 2007 to 4 September 2007, that
is no change.
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 August 2007 to 31 August 2007
will be R 5 140.23 per metric ton (285.28 c/l).
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.
Breakdown of price adjustment
* Petrol 95 ULP
* Diesel 0.05(%)
* Diesel 0.005(%)
* Illuminating Paraffin: The price adjustments in (1) above are based on the
following actual data:
- Average product over/(under)-recovery, measured for the 25 days from
27/07/2007 to 30/08/2007 (cents / litre) as detailed below.
* Petrol: (23.5290)
* Diesel: (3.409)
* Diesel: (3.907)
* Illuminating Paraffin 1.519
Cumulative positive/(negative) slate balances end of July 2007
(R-million)
* Petrol: (341.547)
* Diesel: (292.324)
* Diesel: (292.324)
* Illuminating Paraffin (41.158)
The price adjustments consist of the following elements:
- Average product over/(under)-recovery rounded to the nearest full cent for
price (increase)/decrease:
* Petrol 23.000
* Diesel (4.000)
* Diesel (4.000)
* Illuminating Paraffin (1.000)
One cent/litre added or subtracted depending on cumulative slate balance in
terms of additional mechanism
* Petrol (1.000)
* Diesel (1.000)
* Diesel (1.000)
* Illuminating Paraffin (1.000)
Increase in retail margin on petrol (11.700)
Pump rounding (0.300)
-Total price (increase) / decrease
* Petrol 10.000
* Diesel 5.000)
* Diesel 5.000)
* Illuminating Paraffin 0.000
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:
* Petrol
* Diesel 0.05%
* Diesel 0.005%
* Illuminating Paraffin
Movements in external factors
- Movement in International Product Prices
* Petrol 37.380
* Diesel 12.145
*Diesel 11.785
* Illuminating Paraffin 16.487
Movement in Exchange Rate
* Petrol (13.851)
* Diesel (15.554)
* Diesel (15.692)
* Illuminating Paraffin (14.968)
Over/(under)-recovery for the period 27/07/2007 to 30/08/2007
* Petrol: 23.529
* Diesel: 3.409
* Diesel( 3.907)
* Illuminating Paraffin 1.519
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 05/09/2007 to 02/10/2007 will be as
follows:
* Petrol 95 ULP
* Petrol 93 ULP & LRP
* Petrol 91 ULP
* Diesel 0.05% S
* Diesel 0.005% S
* Illuminating Paraffin
Wholesale margin
* Petrol 39.487
* Petrol 39.268
* Petrol 39.049
* Diesel 39.260
* Diesel 39.260
* Illuminating Paraffin 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 59.700
* Petrol 59.700
* Petrol 59.700
* Diesel 0
* Diesel 0
* Illuminating Paraffin 0
Zone differential in Gauteng
* Petrol 13.900
* 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
RAF levy
* Petrol 41.500
* Petrol 41.500
* Petrol 41.500
* Diesel 41.500
* Diesel 41.500
* Illuminating Paraffin l.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 301.587
* Petrol 291.368
* Petrol 291.149
* Diesel 215.670
* Diesel 215.670
* Illuminating Paraffin 82.972
Contribution to the Basic Fuel Price
* Petrol 389.413
* Petrol 386.632
* Petrol 383.851
* Diesel 440.630
* Diesel 444.030
* Illuminating Paraffin 423.128
Retail Price
* Petrol 691.00
* Diesel 678.00
* Illuminating Paraffin 675.00
Wholesale price
*Petrol 656.30
* Diesel 659.70
* Illuminating Paraffin 506.10
(*) The wholesale price of diesel is regulated, but not the retail price
Statistics of price changes
Effective from:
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
5-Sep-07
* Petrol 95 ULP: Gauteng SA c/l - Coast SA c/l 691.00 - 667.00
* Diesel Gauteng SA c/l - Coast SA c/l: 656.30 - 642.50
* Illuminating Paraffin Gauteng SA c/l - Coast SA c/l: 506.10 - 482.20
Issued by: Department of Minerals and Energy
31 August 2007
