30 January 2009
Product:
Petrol (all grades): 61.000 cents per litre increase in retail price
Diesel 0,05 percent Sulphur: 5.000 cents per litre decrease in wholesale
price
Diesel 0,005 percent Sulphur: 7.000 cents per litre decrease in wholesale
price
Illuminating paraffin (wholesale): 14.000 cents per litre decrease in wholesale
price
Illuminating paraffin (SMNRP): 19.000 cents per litre decrease in the Single
Maximum National Retail price (SMNRP)
Economic factors affecting the unit over/under-recoveries for the period 2
January 2009 to 29 January 2009
During the period under review, the average international product prices of
petrol increased whilst diesel and illuminating paraffin decreased.
The average Rand/United States (US) dollar exchange rate strengthened when
compared to the previous period. The average Rand/US dollar exchange rate for
the period 2 January 2009 to 29 January 2009 was 9.9332 compared to 9.9518
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 4 February 2009 to 3 March 2009 will be 629,0
cents per litre compared to 648,0 cents per litre from 6 January 2009 to 3
February 2009, that is a decrease of 19,00 cents per litre.
Maximum LPGAS refinery gate price
The maximum refinery gate price will be R4 396 58 per metric ton (244,01 cents
per litre) for the period 4 February 2009 to 3 March 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 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 02/01/200
to 29/01/2009 (cents / litre) as detailed below.
Petrol 95 ULP: 61.056
Diesel 0.05 percent: 4.979
Diesel 0.005 percent: 6.226
Illuminating Paraffin: 14.351
Cumulative positive or negative slate balances end of December 2008
(R-million)
Petrol 95 ULP: 1 985.228
Diesel 0.05 percent: 625.971
Diesel 0.005 percent: 625.971
Illuminating Paraffin: (84.759)
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: (61.000)
Diesel 0.05 percent: 5.000
Diesel 0.005 percent: 7.000
Illuminating Paraffin: 14.000
Total price (increase)/decrease:
Petrol 95 ULP: (61.000)
Diesel 0.05 percent: 5.000
Diesel 0.005 percent: 7.000
Illuminating Paraffin: 14.000
Report of the independent auditors
The report of the independent auditors is available on request.
Analysis of the elements that resulted in the over or under-recoveries
The over or 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: (61.710)
Diesel 0.05 percent: 4.164
Diesel 0.005 percent: 5.397
Illuminating Paraffin: 13.582
Movement in Exchange Rate
Petrol 95 ULP: 0.654
Diesel 0.05 percent: 0.815
Diesel 0.005 percent: 0.829
Illuminating Paraffin: 0.770
Over/ (under)-recovery for the period 2 January 2009 to 29 January
2009
Petrol: (61.056)
Diesel 0.05 percent: 4.979
Diesel 0.005 percent: 6.226
Illuminating Paraffin: 14.351
Enquiries:
Mr B Khumalo
Tel: 012 679 9032
Cell: 082 773 2388
Issued by: Department of Minerals and Energy
30 January 2009
