The retail petrol price in South Africa should drop by 18 cents per litre (c/l), the latest data from the
Department of Minerals and Energy shows. An official announcement is expected on Monday, December 2.
The retail petrol price is adjusted on the first Wednesday of every month in accordance with the previous averaging period’s over, or under-recovery.
For the December 4 price change, the averaging period is October 28 to November 25 and the average over-recovery was 19,402c/l for petrol, 14,115c/l
for diesel (0,3% Suplhur) and 20,446c/l for illuminating paraffin.
This is then rounded down to the nearest cent and a further one cent per litre is subtracted to repay oil companies, who run a “slate” that accumulates
the balance owed by motorists to oil companies.
The 19,402 c/l petrol price over-recovery is therefore rounded down to 19 c/l and the one cent per liter slate recovery brings it down to 18 c/l. The
Minister of Minerals and Energy can then change the wholesale and retail margin, which was done for the November adjustment.
At the end of September, the petrol slate, which motorists owed oil companies, stood at R519,926-million. South African motorists use some 850- million litres of petrol per month.
If there is an 18 c/l decrease, then the retail petrol price would be 398 cents per liter in coastal provinces, while in inland provinces, who pay more as
petrol is shipped up from ports to inland distribution points, the December retail petrol price would be 408 c/l.
This compares with 426 c/l in October, 409 c/l in September, 400 c/l in both August and July, and 419 c/l in June and a record 432 c/l in May. In December
2001 the retail price declined by 21 c/l in inland provinces to 358 c/l.
The daily over-recovery on November 25 of 35.488 c/l for petrol, 39,250 c/l for diesel (0,3% Sulphur) and 42,689 c/l for illuminating paraffin implies that
there could be a further reduction in the monthly retail petrol price in January, provided there is no war with Iraq and the rand stays firm. – I-Net Bridge