Apr 03, 2012
DoE initiates fuel price review, urges motorists to be efficientBack
Pretoria|Africa|CoAL|Diesel|Hydrocarbons|Africa|Islamic Republic Of Iran|Singapore|South Africa|Brent Crude Oil|Energy|Oil|Product|Dipuo Peters|Muzi Mkhize|Mediterranean|CTL Technology|Diesel
© Reuse this
The review has started and would be completed before the end of the current financial year, Mkhize said at a media briefing in Pretoria, hours before a big fuel increase comes into effect.
Calculations to determine the basic fuel price currently take into consideration benchmark prices from fuel refineries in Singapore and the Mediterranean regions deemed “most efficient”, in an effort to prevent consumers paying for higher prices that inefficient refineries may impose on them.
Mkhize added that South Africa’s coal-to-liquid (CTL) technology did not necessarily guarantee that the country had a buffer to external forces that determine the price of brent crude oil.
“The CTL technology at times have a positive impact on South Africa’s fuel price, while at other times it has the opposite effect,” he said.
Meanwhile, Energy Minister Dipuo Peters called upon South Africans to use fuel sparingly, saying that the DoE was aware of the public concern over the fuel price increase that takes effect on Wednesday.
“Indeed, the fuel price increase will impact negatively on all South Africans who have no choice but to engage in their normal economic and household activities, which require the use of fuel,” she said.
Further, with regard to potential Western sanctions against oil imports from South Africa’s most significant supplier, Iran, Peters said government had put together a task team to investigate the impact this could have on the country’s basic fuel price, as well as all alternative available options.
She conceded that it would be least desirable to import oil from other sources, owing to the exhaustion of all other available options, resulting in significantly increasing the already high fuel price.
“The DoE task team is engaging with all role players to determine the exact nature of sanctions against Iran and the impact it will have on South Africa’s basic fuel price. Rising geopolitical tensions in other oil-producing regions will also be investigated.
“The task team would report to Cabinet during May on the outcomes of the investigation, whereafter the appropriate course of action will be decided on,” Peters said.
Some of South Africa’s refineries, designed to use brent crude imported from Iran, would have to be upgraded at significant cost to be able to process oil from alternative sources.
From midnight, motorists would have to fork out 71c/l more for 95-octane petrol in the inland region and 66c/l more at the coast.
The inland price of 93-octane petrol would increase by 73c/l.
The price of 0.005% sulphur diesel will increase by 47.6c/l at the coast, while the price for the same product inland would increase by 51.9c/l.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Updated 1 hour 28 minutes ago A number of foreign nationals that were displaced as a result of xenophobia-driven violence across Johannesburg and Durban’s inner city and township areas have started returning to their adoptive communities, the Inter-Ministerial Committee (IMC) on Migration...
Updated 1 hour 30 minutes ago South Africa will likely raise its 2015 maize output forecast after rains in crop-producing areas boosted production and yields, a survey of trading firms by Reuters showed on Tuesday. The government's Crop Estimates Committee (CEC) has previously forecast that the...
Updated 1 hour 40 minutes ago The Square Kilometre Array (SKA) Organisation and Amazon Web Services (AWS) have partnered to launch the ‘AstroCompute in the Cloud’ grant programme to attract innovative tools and techniques to process, store and analyse the global astronomy community’s vast amounts...
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.