The RAS determines margins for retail petrol only. The main reason is because retail petrol is a regulated product and the price per fuel zone is promulgated in the Government Gazette on a monthly basis.
Why do petrol prices vary in South Africa?
South Africa’s fuel prices are adjusted on a monthly basis, informed by international and local factors. International factors include the fact that South Africa imports both crude oil and finished products at a price set at the international level, including importation costs, e.g. shipping costs.
Why is fuel regulated in South Africa?
The prices of which are regulated by the government. … This is one main reason for the South African government placing regulations on the petrol price. It is to protect the South African economy and its consumers against the greatly fluctuating international oil prices.
Why are fuel prices regulated?
The government influences retail fuel prices by setting maximum prices for petroleum products, which are revised regulary. The purpose of this form of price control is to protect consumers from sudden upward price fluctuations or unreasonably high market prices.
What determines the price of petrol?
There are two main constituents of the prices of controlled petroleum products: The external factors – the dollar price of the product on world markets multiplied by the US$/R exchange rate. The internal factors – the rand-based retail and oil company marketing margins, transport costs and taxes and levies.
What influences the price of petrol in South Africa?
This cost is largely influenced by the international price of crude oil and the R/$ exchange rate. All other elements making up the petrol price are local in nature. These include taxes, levies, margins, and storage and distribution costs (Figure 1).
Who regulates the price of petrol in South Africa?
The petrol retail price is regulated by government, and changed every month on the first Wednesday of the month. The calculation of the new price is done by the Central Energy Fund (CEF) on behalf of the Department of Energy (DOE).
What is the current price of petrol in South Africa?
The full list of changes is as follows: Petrol 95: decrease of 68 cents per litre. Petrol 93: decrease of 71 cents per litre.
|Fuel (Inland)||December official||January official|
|0.05% diesel (wholesale)||R17.92||R17.24|
|0.005% diesel (wholesale)||R17.97||R17.28|
Can government control petrol prices?
– The other main reason for the increase in petrol price is increase in demand compared to low supply of petrol, which cannot be controlled by the Government alone. … Government alone cannot control the rising petrol prices.
How is the basic fuel price calculated in South Africa?
The Basic Fuel Price (BFP) is based on the import parity pricing principle i.e. what is would cost a South African importer of petrol to buy the petrol from an international refinery, transport the product from that refinery, insure the product against losses at sea and land the product on South African shores.
Are fuel prices regulated?
The law of supply and demand regulates gasoline prices, as it does nearly all commodities. Both supply and demand are changing all the time, as new oil wells are discovered and as economic conditions impact consumer demand.
What is the cost of 1 litre of petrol?
101.39 per litre. The petrol rate stood steady from 1 to 4 September at the rate of Rs. 101.39 per litre.
Does OPEC set oil prices?
OPEC does not “set” oil prices. … Twice each year, ministers from each OPEC country meet in Vienna, Austria to review the status of the international oil market and to forecast the future oil demands in order to agree upon an appropriate crude oil production level.
What determines the price of crude oil in South Africa?
The three typical factors that are considered when determining the price includes: How much oil there is currently available in storage. What the current output of oil is, and. What the speculative and expected demand for both gas and oil will be.
Who supplies South Africa with petrol?
BP Southern Africa, Chevron South Africa, Engen Petroleum, PetroSA, Sasol Oil, Shell South Africa and Total South Africa are the main players in the South African oil industry. They operate storage terminals and distribution facilities throughout the country.