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http://www.fin24.co.za/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-25_2055723
Johannesburg - The department of minerals and energy (DME) could implement a retail petrol price cut of some 24 cents per litre (c/l) on February 7, 2007, provided the daily over-recovery remains at or above the January 15 level.
South Africa's daily unleaded petrol price over-recovery eased to 31.869c/l on January 15 from 34.879c/l on January 12.
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.
An over-recovery, therefore, implies that the retail petrol price can be lowered at the next monthly price adjustment, provided the government does not introduce a new levy or raise either the wholesale or retail margin.
A February 2007 retail petrol cut of 24c/l would bring the total cut to 130c/l since the retail petrol price peaked at 704c/l in August 2006 in Gauteng.
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 December 28 to February 1 and a price adjustment announcement is due on February 2. The average over-recovery for the period December 28 to January 15 was 15.402 c/l.
The Opec Reference Basket of 11 crude oils saw its price drop from a record US$72.67 per barrel on August 8 2006 to $49.10 on January 11, its first move below $50 per barrel in 19 months.
It slid further to $48.65 on January 12, before recovering to $49.23 on January 15. It was last above $58 per barrel on December 21 2006, above $60 on September 12 2006, and above $70 on August 11 2006.
The new Opec Reference Basket (ORB) is made up of the following: Saharan Blend (Algeria), Minas (Indonesia), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and BCF 17 (Venezuela).
South Africa's international petroleum product prices are closely correlated with the ORB, rather than Brent or Nymex crude oil futures prices, which tend to be higher than ORB.
Johannesburg - The department of minerals and energy (DME) could implement a retail petrol price cut of some 24 cents per litre (c/l) on February 7, 2007, provided the daily over-recovery remains at or above the January 15 level.
South Africa's daily unleaded petrol price over-recovery eased to 31.869c/l on January 15 from 34.879c/l on January 12.
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.
An over-recovery, therefore, implies that the retail petrol price can be lowered at the next monthly price adjustment, provided the government does not introduce a new levy or raise either the wholesale or retail margin.
A February 2007 retail petrol cut of 24c/l would bring the total cut to 130c/l since the retail petrol price peaked at 704c/l in August 2006 in Gauteng.
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 December 28 to February 1 and a price adjustment announcement is due on February 2. The average over-recovery for the period December 28 to January 15 was 15.402 c/l.
The Opec Reference Basket of 11 crude oils saw its price drop from a record US$72.67 per barrel on August 8 2006 to $49.10 on January 11, its first move below $50 per barrel in 19 months.
It slid further to $48.65 on January 12, before recovering to $49.23 on January 15. It was last above $58 per barrel on December 21 2006, above $60 on September 12 2006, and above $70 on August 11 2006.
The new Opec Reference Basket (ORB) is made up of the following: Saharan Blend (Algeria), Minas (Indonesia), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and BCF 17 (Venezuela).
South Africa's international petroleum product prices are closely correlated with the ORB, rather than Brent or Nymex crude oil futures prices, which tend to be higher than ORB.
