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

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Viewing cable 05PRETORIA2665, South Africa: Fuel Prices at New Record Highs

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Reference ID Created Released Classification Origin
05PRETORIA2665 2005-07-07 13:47 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 002665 
 
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 at New Record Highs 
 
REF: PRETORIA 2998 
 
Summary 
------- 
1. (U) On July 6, 2005, the Department of Minerals and 
Energy increased the prices of gasoline, diesel, and 
kerosene to all-time highs.  Two-thirds of the increase 
was due to a weaker rand and one-third to the higher 
international crude oil price.  End Summary. 
 
Government Announces Substantial Price Increases 
--------------------------------------------- --- 
2.   (U) On July 6, the Department of Minerals and Energy 
(DME) increased the retail price of gasoline in rand 
terms by 5.7% and wholesale prices of diesel and kerosene 
by an average of 10.5% and 8.9%, respectively.  The 
primary contributors to the increases were the decline in 
the average rand/dollar exchange rate (from 6.28 to 
6.77), which accounted for 67% of the increase, and the 
rise in the international price of crude oil, which 
accounted for 33% of the increase.  The tables below show 
the increase in the average price of fuel in Johannesburg 
and components for the new price.  While the change in 
the equivalent dollar price is small, the change in the 
rand price is large. 
 
 
 
           Wholesale Johannesburg Prices 
                (U.S. Dollars/Gallon) 
 
                        May    June   July  %Change 
Gasoline - (retail)     3.20   3.05   2.99   -2.0 
Diesel  - 0.3% Sulfur   2.96   2.82   2.89   +2.5 
Diesel  - 0.05% Sulfur  3.10   2.95   3.02   +2.4 
Kerosene                2.39   2.23   2.26   +1.3 
 
 
           Wholesale Johannesburg Prices 
                 (S.A. Rands/Liter) 
 
Gasoline - (retail)     5.22   5.06   5.35   + 5.7 
Diesel  - 0.3% Sulfur   4.84   4.68   5.17   +10.5 
Diesel  - 0.05% Sulfur  5.06   4.89   5.40   +10.4 
Kerosene                3.90   3.71   4.04   + 8.9 
 
 
           Cost Components of the New Price 
 
Basic Fuel Cost                           51.1% 
Taxes and Levies                          30.2% 
Operating Costs and Dealer Margins        18.7% 
 
FRAZER