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)
Other Pipelines News
Article contains comments
Updated 9 minutes ago In this context Creamer Media’s Gold 2015 report reviews the global gold market and gold companies that have operations in Africa. It particularly focuses on the South African gold sector, including labour issues and electricity shortages, as well as prospects for...
Updated 1 hour 18 minutes ago The first of a total of 40 Cuban engineers have arrived in the Free State on Sunday, with the rest expected to arrive on Monday. They will mainly be involved in improving service delivery, the construction of government subsidised settlements, houses, the provision...
Updated 1 hour 41 minutes ago Toyota has lifted the veil on its new, eighth-generation Hilux bakkie, set to launch in South Africa in the first quarter next year. Sales have already started in Thailand.
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
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...