Cablegate: South Africa: Fuel Prices at New Record Highs
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
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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
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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