Retail petrol price could be cut by 71c/l in May

17 Apr 2013

The Department of Minerals and Energy could implement a retail petrol price cut of about 71c/l on 1 May 2013‚ provided the daily over-recovery remains near the 12 April level. The wholesale diesel (0.05% Sulphur) price could fall by a more subdued 49c/l.

The daily petrol price over-recovery was 97.703 cents per litre (c/l) on 12 April after reaching an under-recovery of 100.661c/l on 29 January.

The change in the daily petrol price in January was largely due to the weakening rand‚ which moved from R8.5148 per US dollar on 1 January to R9.0675 on 29 January‚ while in April the major factor was a fall in international product prices.

The average over-recovery for the period 27 March to 12 April was 52.737c/l of which lower international product prices accounted for 49.004c/l‚ while the stronger rand exchange rate only accounted for 3.733c/l.

An over-recovery means that the basic petrol price based on the daily product price and exchange rate is less than the basic fuel price used in the calculation of the monthly retail petrol price.

An over-recovery therefore implies that the retail petrol price will most probably be decreased at the next monthly price adjustment‚ provided the government does not introduce a new levy or raise either the wholesale or retail margin.

The retail petrol price is adjusted monthly on the first Wednesday of the month in accordance with the previous averaging period's over- or under- recovery.

The current averaging period runs from 27 March to 25 April and a price announcement is due on 26 April.

Source: I-Net Bridge

For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.

We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.

Go to: http://www.inet.co.za