South Africa has been facing a lot this year, from Eskom’s Loadshedding, and a bunch of other SOC companies, and IMF forecasting decline in economic growth for South Africa – Job losses, Standard Bank on cutting jobs, iYOH! – Let’s a take a deep breath and look at the brighter things South Africa has in store for us.
A media statement by CEF (SOC) LTD, confirms the decrease in petrol prices effective 05 Wednesday 2020. The increase affects both the Petrol and Diesel. Both the petrol Grades (93 and 95 / ULP & LRD) will decrease in retail price by 13 cents per litre in Gauteng. Diesel (both Grades) will increase by 05 cents in wholesale price.
The petrol rates in this case are affected by the Rand appreciation against the US Dollar during the period under review according to the statement release on Sunday, which led to a lower contribution to the Basic Fuel Prices on petrol etc.
The statement also mentions that “In line with the Self-Adjusting Slate Levy Mechanism Rules, the Slate levy on petrol and diesel will remain at 0.00 c/l with effect from 05 February 2020.”
Understanding slate levy
BFP, which is the Basic Fuel Price of petrol, diesel and illuminating paraffin, is calculated every day. Each day the calculated price will come up higher or lower, and if higher, a unit recovery is released, if lower, an over recovery is released. Under recovery denotes fuels users are paying too little, whereas the over recovery denotes consumers are paying too much.
“These calculations are done for each day in the fuel price review period and an average for the fuel price review period is calculated. This monthly unit over/under recovery is multiplied by the volumes sold locally in that month and the cumulative over/under recovery is recorded on a Cumulative over/under recovery account (referred to as the “Slate Account”). A Slate levy is applicable on fuels to finance the balance in the Slate account when the Slate is in a negative balance.” This is according to the department of energy in South Africa.