The petrol price may increase by a further 1.4 cents a litre in Gauteng after Nersa approved new tariffs for Transnet’s petroleum pipelines.<\/p>\n
“The consequent petrol price rise is expected to be 1.4 cents per litre,” the National Energy Regulator of SA said on Wednesday (13 March).<\/p>\n
It said this would represent a 0.1 percent increase in the February 2013 retail price of 93 octane petrol in Gauteng.<\/p>\n
This would happen if the energy minister decided to use the pipeline tariff as a proxy for the cost of transporting fuel from Durban to Johannesburg.<\/p>\n
Nersa said it had amended Transnet Limited’s licence to operate its petroleum pipeline system by setting tariffs, as a condition of that licence, for the period from April 3, 2013 to April 1, 2014.<\/p>\n
Last week the petrol price went up by 81 cents a litre and diesel by 58.38 cents per litre.
\nThe increases came into effect two weeks before the 30 cents a litre increase in the general fuel and Road Accident Fund levy announced by Finance Minister Pravin Gordhan.<\/p>\n
The fuel levy increases take effect next month, pushing the price of 95 octane petrol to R13,38 a litre in the inland provinces.<\/p>\n
Transnet had applied for a 22.6 percent increase in its allowable revenue, which would have resulted in a 4.72 cents per litre increase in inland petroleum product prices, had it been granted.<\/p>\n
In arriving at its decision, Nersa said it looked at factors such as public interest, regulatory certainty, the new multi-product pipeline project reaching its capital expenditure peak, and current and future debt funding.<\/p>\n
“Consequently, Nersa has set petroleum pipeline tariffs that will allow Transnet to realise an 8.53 percent increase in allowable revenue compared to the 2012\/13 tariff period.”<\/p>\n
This would be an increase from R2.57 billion in 2012\/13 to R2.79bn in 2012\/13.<\/p>\n
Nersa said Transnet pipelines reported a 7.1 percent reduction in total petroleum volumes pumped from 2010\/11 to 2011\/12.<\/p>\n
This was a decline from 18.025bn litres in 2010\/11 to 16.741bn litres in 2011\/12.
\nTransnet has forecast an overall 4.6 percent increase in volumes to be pumped in the 2013\/14 financial year.<\/p>\n
This includes an approximate 5.96 percent increase in petroleum product volumes transported from the coast to the inland region, as a result of the new pipeline capacity that Transnet has brought into operation.<\/p>\n
Petrol set for massive hike<\/a><\/strong><\/p>\n Petrol price shock<\/a><\/strong><\/p>\n Petrol price set to rise in February<\/strong><\/a><\/p>\n Limited room for budget expansion: Gordhan<\/strong><\/a><\/p>\n