Motorists due for petrol price relief October 28, 2005
Johannesburg - The Department of Minerals and Energy (DME) is likely to announce a 31 cents per litre cut in the retail petrol price for the month of November.
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 30 September to 27 October and a price announcement is due late on Friday.
The October 27 over-recovery on the daily basic petrol price is 56.554 cents per litre, compared with 39.397 cents per litre recorded on 14 October.
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.
This means that the retail petrol price on November 2 could be cut by 31 cents per litre, as the average over-recovery for the period is 32.698 cents per litre.
This is then rounded to the nearest cent so that the effect of rounding contributes to the clearing of the cumulative balance of the individual products on the slate.
The cumulative petrol slate was a negative R983.667 million at the end of August, which means motorists pay an additional one cent per litre to clear the slate. - I-Net Bridge
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