27 February 2009
Product:
Petrol (all grades): 45.000 cents per litre increase in retail price
Diesel 0,05 percent Sulphur: 38.000 cents per litre decrease in wholesale
price
Diesel 0,005 percent Sulphur: 38.000 cents per litre decrease in wholesale
price
Illuminating paraffin (wholesale): 26.000 cents per litre decrease in wholesale
price
Illuminating paraffin (SMNRP): 34.000 cents per litre decrease in the
Single
Maximum National Retail price (SMNRP)
Economic factors affecting the unit over/under-recoveries for the period 30
January 2009 to 26 February 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 30 January 2009 to 26 February 2009 was 10.0602 compared to
9.9332 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 March 2009 to 31 March 2009 will be
595,0 c/l compared to 629,0 c/l from 3 February 2009 to 3 March 2009, that is a
decrease of 34,00c/l.
Maximum LPGAS refinery gate price
The maximum refinery gate price will be R 4 737.58 per metric ton (262.93
c/l) for the period 4 March 2009 to 31
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 30/01/2009
to 26/02/2009 (cents / litre) as detailed below.
Petrol 95 ULP: ( 45.399)
Diesel 0.05 percent: 37.970
Diesel 0.005 percent: 37.586
Illuminating Paraffin: 26.025
Cumulative positive or negative slate balances end of January 2009
(R-million)
Petrol 95 ULP: 1 430.336
Diesel 0.05 percent: 623.010
Diesel 0.005 percent: 623.010
Illuminating Paraffin: (83.744)
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: ( 45.000)
Diesel 0.05 percent: 38.000
Diesel 0.005 percent: 38.000
Illuminating Paraffin: 26.000
Total price (increase)/decrease:
Petrol 95 ULP: ( 45.000)
Diesel 0.05 percent: 38.000
Diesel 0.005 percent: 38.000
Illuminating Paraffin: 26.000
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: (40.701)
Diesel 0.05 percent: 42.762
Diesel 0.005 percent: 42.479
Illuminating Paraffin: 30.662
Movement in Exchange Rate
Petrol 95 ULP: (4.698)
Diesel 0.05 percent: (4.791)
Diesel 0.005 percent: (4.893)
Illuminating Paraffin: (4.637)
Over/ (under)-recovery for the period 30 January 2009 to 26 February
2009
Petrol: (45.399)
Diesel 0.05 percent: 37.970
Diesel 0.005 percent: 37.586
Illuminating Paraffin: 1 37.586
Enquiries:
Mr B Khumalo
Tel: 012 679 9032
Cell: 082 773 2388
Issued by: Department of Minerals and Energy
27 February 2009
