27 March 2009
Product:
Petrol 93 ULP and LRP: 36,000 cents per litre increase in retail price
Petrol 95 ULP and LRP: 31,000 cents per litre increase in retail price
Diesel 0,05 percent Sulphur: 39,500 cents per litre increase in wholesale
price
Diesel 0,005 percent Sulphur: 39,500 cents per litre increase in wholesale
price
Illuminating Paraffin (Wholesale): 5,000 cents per litre decrease in wholesale
price
Illuminating Paraffin (SMNRP): 7,000 c/l decrease in the Single Maximum
National Retail price (SMNRP)
Economic factors affecting the unit over/under-recoveries for the period 27
February 2009 to 26 March 2009
"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
February 2009 to 26 March 2009 was 10,0655 compared to 10,0602 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 1 April 2009 to 5 May 2009 will be 581,0
c/l compared to 588,0 c/l from 4 March 2009 to 31 March 2009, that is a
decrease of 7,00c/l."
Increase in fuel tax on petrol and diesel
"The Minister of Finance, in his Budget Speech on 11 February 2009,
announced an increase of 23,0 c/l and 24,0 c/l in the fuel tax on petrol and
diesel respectively with effect from 1 April 2009."
Increase in the road accident fund levy on petrol and diesel
"The Minister of Finance, in his Budget Speech on 11 February 2009,
announced an increase of 17,5 c/l in the Road Accident Fund levy on petrol and
diesel with effect from 1 April 2009."
Maximum LPGAS refinery gate price
The maximum refinery gate price will be R4 738,06 per metric ton (262,96
c/l) for the period 1 April 2009 to 5 May 2009.
Price adjustment
In terms of the agreed mechanism:
* 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.
* 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.
* "In order to manage a negative balance in the cumulative over/(under)
recovery account (the slate), a Self-Adjusting Slate Levy Mechanism (SLM) has
been implemented with effect from 7 January 2009 (the SLM is available on the
website of the Department of Minerals and Energy (DME)). A Slate levy will only
be applicable on all petrol and diesel grades if the slate balance is negative
(cumulative under recovery) by more than R250,0 million."
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 20 days from
27/02/2009 to 26/03/2009 (cents/litre) as detailed below.
Petrol 95 ULP: (8,447)
Diesel 0,05 percent: 1,180
Diesel 0,005 percent: 1,085
Illuminating Paraffin: 5,620
Cumulative positive/(negative) slate balances end of February 2009
(R-million)
Petrol 95 ULP: 1 049,102
Diesel 0,05 percent: 913,725
Diesel 0,005 percent: 913,725
Illuminating Paraffin: (75,088)
The price adjustments consist of the following elements (c/l):
Average product over / (under)-recovery rounded to the nearest full cent for
price (increase)/decrease
Petrol 95 ULP: (9,000)
Diesel 0,05 percent: 2,000
Diesel 0,005 percent: 2,000
Illuminating Paraffin: 5,000
Increase in Fuel Levy on Petrol and Diesel
Petrol 95 ULP: (23.000)
Diesel 0,05 percent: (24,000)
Diesel 0,005 percent: (24,000)
Illuminating Paraffin: 0,000
Increase in Road Accident Levy on Petrol and Diesel
Petrol 95 ULP: (17,500)
Diesel 0,05 percent: (17,500)
Diesel 0,005 percent: (17,500)
Illuminating Paraffin: 0,000
Rounding
Petrol 95 ULP: (0,500)
Total price (increase)/decrease:
Petrol 95 ULP: (31,000)
Diesel 0,05 percent: (39,500)
Diesel 0,005 percent: (39,500)
Illuminating Paraffin: 5,000
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: 8,639
Diesel 0,05 percent: 1,381
Diesel 0,005 percent: 1,291
Illuminating Paraffin: 5,811
Movement in Exchange Rate
Petrol 95 ULP: (0,192)
Diesel 0,05 percent: (0,202)
Diesel 0,005 percent: (0,205)
Illuminating Paraffin: (0,191)
Over/ (under)-recovery for the period 27 February to 26 March 2009
Petrol: 8.447
Diesel 0,05 percent: 1,180
Diesel 0,005 percent: 1,085
Illuminating Paraffin: 5,620
Enquiries:
Mr B Khumalo
TEL: 012 679 9032
Cell: 082 773 2388
Issued by: Department of Minerals and Energy
27 March 2009
