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
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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