2 November 2007
Product
* Petrol (all grades) 3.000 cents per litre increase in retail price
* Diesel 0.05% Sulphur 6.000 cents per litre increase in wholesale price
* Diesel 0.005% Sulphur 6.000 cents per litre increase in wholesale price
*Illuminating Paraffin (Wholesale) 10.000 cents per litre increase in wholesale
price
* Illuminating Paraffin (SMNRP) 13.000 cents per litre increase in the Single
Maximum National Retail price (SMNRP)
Economic factors affecting the unit over/under-recoveries for the period 28
September 2007 to 1 November 2007
During the period under review, the average international product prices of
Petrol, 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 28
September 2007 to 1 November 2007 was 6.7877 compared to 7.1580 during the
previous period.
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 7 November 2007 to 4 December 2007 will
be 691,0 c/l compared to 678,0 c/l from 3 October 2007 to 6 November 2007, that
is an increase of 13,0 c/l.
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 October 2007 to 31 October 2007
will be R5 277.30 per metric ton (292.88 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
The price adjustments in (1) above are based on the following actual
data:
- Average product over/(under)-recovery, measured for the 25 days from
28/09/2007 to 01/11/2007 (cents/litre) as detailed below:
* Petrol 95 ULP: (1.338)
* Diesel 0.05(%): 7.610
* Diesel 0.005(%): 7.783
* Illuminating Paraffin: (8.891)
- Cumulative positive/(negative) slate balances end of September 2007 (R
million):
* Petrol 95 ULP: (118.006)
* Diesel 0.05(%): (399.037)
* Diesel 0.005(%): (339.037)
* Illuminating Paraffin: (42.069)
The price adjustments consist of the following elements:
- Average product over/(under)-recovery rounded to the nearest full cent for
price (increase)/decrease:
* Petrol 95 ULP c/l: (2.000)
* Diesel 0.05(%) c/l: 7.000
* Diesel 0.005(%) c/l: 7.000
* Illuminating Paraffin c/l: (9.000)
- One cent/litre added or subtracted depending on cumulative slate balance in
terms of additional mechanism:
* Petrol 95 ULP c/l: (1.000)
* Diesel 0.05(%) c/l: (1.000)
* Diesel 0.005(%) c/l: (1.000)
* Illuminating Paraffin c/l: (1.000)
- Total price (increase) / decrease:
* Petrol 95 ULP c/l: (3.000)
* Diesel 0.05(%) c/l: (6.000)
* Diesel 0.005(%) c/l: (6.000)
* Illuminating Paraffin c/l: (10.000)
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:
Movements in external factors:
- Movement in International Product Prices
* Petrol c/l: (23.131)
* Diesel 0.05% c/l: (17.112)
* Diesel 0.005% c/l: (17.116)
* Illuminating Paraffin c/l: (33.320)
- Movement in Exchange Rate
* Petrol c/l: 21.793
* Diesel 0.05%: 24.723
* Diesel 0.005%: 24.899
* Illuminating Paraffin: 24.428
Over/(under)-recovery for the period 31/08/2007 to 27/09/2007
* Petrol: (1.338)
* Diesel 0.05%: 7.611
* Diesel 0.005%: 7.783
* Illuminating Paraffin: (8.892)
Enquiries:
Ms B Mafuna
Tel: 012 317 8086
Cell: 082 571 4310
Issued by: Department of Minerals and Energy
2 November 2007
Source: Department of Minerals and Energy (http://www.dme.gov.za)
