US embassy cable - 05PRETORIA1932

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SOUTH AFRICA: FUEL PRICES AT NEW HIGHS

Identifier: 05PRETORIA1932
Wikileaks: View 05PRETORIA1932 at Wikileaks.org
Origin: Embassy Pretoria
Created: 2005-05-17 15:21:00
Classification: UNCLASSIFIED
Tags: EPET ENRG ECON EIND SF
Redacted: This cable was not redacted by Wikileaks.
This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 PRETORIA 001932 
 
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 HIGHS 
 
REF: PRETORIA 2998 
 
Summary 
------- 
1.   (U) On May 4, 2005, the Department of Minerals and Energy 
again raised the price of gasoline, diesel, and kerosene.  South 
Africa gasoline prices continued their upward spiral above the R5 
per liter mark.  This follows the substantial increases imposed 
in March (8-12%) and April (8-16%).  This time around, the 
weakening of the rand against the dollar contributed 
substantially to the overall price increase.  Despite the record 
price, government has no plans to tap into its Fuel Equalization 
Fund to smooth retail gasoline price increases.  The impact of 
higher fuel prices is beginning to show in the economy, through 
an increase in the Producer Price Index and a surcharge levied on 
airline tickets.  End Summary. 
 
Government Announces Further Fuel Price Increases 
--------------------------------------------- ---- 
2.   (U) On May 4, the Department of Minerals and Energy (DME) 
further increased the retail price for gasoline by 4% and 
wholesale prices for diesel and kerosene by 2.1% and 7.2%, 
respectively.  Over the last three months prices have increased 
on these products by 29%, 26%, and 40%, respectively.  The table 
below shows the increase in the average price of fuel in 
Johannesburg.  Because of the weakening of the rand, dollar 
increases are less than rand increases. 
 
         Johannesburg Prices U.S. Dollars/Gallon 
 
                                   April  May   %Change 
Gasoline - (retail)                3.14   3.20   1.9% 
Diesel - 0.3% Sulfur (wholesale)   2.97   2.96   

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