SOUTH AFRICA: FUEL PRICES CONTINUE TO NEW RECORD

UNCLAS PRETORIA 003190 SIPDIS STATE PLEASE PASS USGS USDOC FOR 4510/ITA/MAC/AME/OA/DIEMOND DOE FOR THOMAS SPERL E.O. 12958: N/A TAGS: EPET ENRG ECON EIND SF SUBJECT: SOUTH AFRICA: FUEL PRICES CONTINUE TO NEW RECORD HIGHS REF: PRETORIA 2665 Summary -------------- ¶1. (U) On August 3, 2005, the Department of Minerals and Energy increased the prices of gasoline, diesel, and kerosene to new all-time highs. All of the increase was due to the higher international crude oil price. End Summary. Government Announces Further Price Increases -------------- ¶2. (U) On August 3, the Department of Minerals and Energy (DME) again increased the retail price of gasoline in rand terms by 5.0% and the wholesale prices of diesel and kerosene by an average of 3.1% and 3.7%, respectively. This is on top of the respective July 6 increases of 5.7% (retail),and 10.5% and 8.9% (wholesale). A slightly strengthening rand was overshadowed by the increase in the international price of crude oil, which was totally responsible for this month's price increases. The tables below show the increases in the average price of fuel in Johannesburg and components for the new price. Wholesale Johannesburg Prices (U.S. Dollars/Gallon) June July Aug %Change Gasoline - (retail) 3.05 2.99 3.16 +5.7 Diesel - 0.3% Sulfur 2.82 2.89 3.00 +3.8 Diesel - 0.05% Sulfur 2.95 3.02 3.13 +3.6 Kerosene 2.23 2.26 2.36 +4.4 Wholesale Johannesburg Prices (S.A. Rands/Liter) Gasoline - (retail) 5.06 5.35 5.62 +5.0 Diesel - 0.3% Sulfur 4.68 5.17 5.33 +3.1 Diesel - 0.05% Sulfur 4.89 5.40 5.57 +3.1 Kerosene 3.71 4.04 4.19 +3.7 Cost Components of the New Price Basic Fuel Cost 53.4% Taxes and Levies 28.7% Operating Costs and Dealer Margins 17.9% FRAZER