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Breaking News:

Gauteng petrol could go up to R13.20/l


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Gauteng petrol could go up to R13.20/l

Posted on 29 June 2013 by "the witness"

Jun 14 2013 11:34 I-Net Bridge 


Johannesburg – A weaker rand and higher international product prices are likely to push the Gauteng retail petrol price in July close to the record R13.20 per litre reached in April‚ data released by the Central Energy Fund on Friday showed.

The daily underrecovery on June 13 was 80.89 cents per litre (c/l)‚ while the average for the period May 31 to June 13 was 82.51c/l.

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

An underrecovery therefore implies that the retail petrol price will most probably be increased at the next monthly price adjustment‚ regardless of whether the government introduces a new levy or raises 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 underrecovery.

This averaging period runs from May 31 to June 27 and a price announcement is due on June 28.

The Department of Minerals and Energy could therefore implement a retail petrol price increase of about 81c/l on July 3‚ provided the daily underrecovery remains near the June 13 level. The wholesale diesel (0.05% Sulphur) price could rise by 75c/l. 

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