Fuel price increases to be effected on 7 November 2012

2 Nov 2012

The next fuel price adjustments will be effected on Wednesday, 7 November 2012. The current fuel price review period closes on 1 November 2012.

The reasons for the fuel prices adjustments are:

1. Crude oil prices

1.1 During the current fuel price review period (28 September 2012 to 1 November 2012), the average Brent crude oil price, compared to the previous fuel price review period, decreased slightly from USD 112.96 per barrel to USD 111.80 per barrel.

2. International product prices

The fuel prices increased substantially during the first half of the review period because of increased refinery margins, which were supported by increased demand for petroleum products. However, the prices decreased drastically due to a sharp decrease in demand for petroleum products, especially petrol as the USA and Europe entered their winter season. The latter led to an average decrease in the international product prices.

3. The Rand / Dollar exchange rate

The deterioration of the Rand against the US Dollar offset the aforesaid price decreases by contributing to an increase in the Basic Fuel Price (BFP) of between 27.0 and 29.0 cents per litre. The weaker Rand is mainly attributed to (a) on-going debt crisis concerns in the Euro Zone; (b) concerns about a wider domestic budget deficit; (c) lower South African growth forecast; and (d) the degrading of South Africa’s credit ratings.

4. Adjustment to the Slate Levy on petrol and diesel

In line with the provisions of the Self-Adjusting Slate Levy Mechanism, a Slate Levy of 2.2 cents per litre (bringing the total slate levy to 15.36 c/l) will be implemented into the price structures of petrol and diesel with effect from 07 November 2012.

5. Anticipated fuel price adjustments

Based on the average unit over- and under- recovery and the implementation of a Slate Levy of 2.2 c/l on petrol and diesel, the following fuel price changes will be implemented on 07 November 2012, namely:

• Petrol (all grades): 10.0 c/l, decrease;
• Diesel (0.05% Sulphur): 10.2 c/l, increase;
• Diesel (0.005% Sulphur): 9.2 c/l, increase;
• IP wholesale: 3.0 c/l, increase;
• SMNRP for IP: 4.0 c/l, increase; and
• Maximum Retail Price for LPGas: 1.0 c/kg, increase

For enquiries:
Johannes Mokobane
Tel: 012 406 7481
Cell: 082 766 3674
E-mail: johannes.mokobane@energy.gov.za

Zodwa Batyashe
Tel: 012 4067484
Cell: 082 455 9796
E-mail: zodwa.batyashe@energy.gov.za or Mediadesk@energy.gov.za

Issued by: Department of Energy 
2 Nov 2012