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CONFIDENTIAL CONFIDENTIAL//NOFORN SECRET SECRET//NOFORN UNCLASSIFIED UNCLASSIFIED//FOR OFFICIAL USE ONLY

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Viewing cable 05PRETORIA2278, SOUTH AFRICA: FUEL PRICE SPIRAL TAKES A

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Reference ID Created Released Classification Origin
05PRETORIA2278 2005-06-13 07:15 2011-08-24 01:00 UNCLASSIFIED Embassy Pretoria 
This record is a partial extract of the original cable. The full text of the original cable is not available.
 
UNCLAS PRETORIA 002278 
 
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 PRICE SPIRAL TAKES A 
BREATHER 
 
REF: PRETORIA 2998 
 
Summary 
------- 
1. (U) On June 1, 2005, the Department of Minerals 
and Energy slightly reduced the prices of gasoline, 
diesel, and kerosene from all time highs charged the 
previous month.  The primary reason for the move was 
the lower price of crude oil.  End Summary. 
 
Government Announces Marginal Price Decreases 
-------------------------------------- 
2.   (U) On June 1, the Department of Minerals and 
Energy (DME) reduced the retail price of gasoline by 
3.1% and wholesale prices of diesel and kerosene by 
an average of 3.3% and 6%, respectively.  The 
primary reason for the move was the lower price of 
imported crude oil during the May 1 to May 31 period 
of assessment.  The weakening of the rand towards 
the end of May and a surcharge to balance refinery 
losses incurred during the previous month lessened 
the decrease somewhat as prices moved from all time 
highs in May.  The tables below show the decrease in 
the average price of fuel in Johannesburg and 
components for the new price. 
 
 
 
           Wholesale Johannesburg Prices 
                (U.S. Dollars/Gallon) 
 
                        April  May    June  %Change 
Gasoline - (retail)     3.14   3.20   3.05   -4.7 
Diesel  - 0.3% Sulfur   2.97   2.96   2.82   -3.9 
Diesel  - 0.05% Sulfur  3.09   3.10   2.95   -4.8 
Kerosene                2.28   2.39   2.23   -6.7 
 
           Wholesale Johannesburg Prices 
                 (S.A. Rands/Liter) 
 
Gasoline - (retail)     5.02   5.22   5.06   -3.1 
Diesel  - 0.3% Sulfur   4.74   4.84   4.68   -3.3 
Diesel  - 0.05% Sulfur  4.93   5.06   4.89   -3.4 
Kerosene                3.64   3.90   3.71   -4.9 
 
           Components for the New Price 
 
Basic Fuel Price  48.0% 
Taxes and Levies  31.9% 
Operating Margin  20.1% 
 
FRAZER