Fin24

Pipeline tariff to add to fuel price

2012-03-15 17:15

Johannesburg - The petrol price in Gauteng may rise another four cents a litre in April following the National Energy Regulator of South Africa's (Nersa's) announcement on Thursday of new tariffs for Transnet's petroleum pipelines.

"If the minister of energy decides to use the pipeline tariff as a proxy for the cost of transporting fuel from Durban to Johannesburg, as has been the case in the past, the consequent petrol price rise is expected to be 4 cents per litre," Nersa said.

Petrol is already due to increase by 28c/litre in April.

Finance Minister Pravin Gordhan announced in his budget that the general fuel levy on petrol and diesel would increase by 20c/litre and the Road Accident Fund would increase by 8c/litre.

In the light of Nersa's announcement, it could now increase by 32c/litre in Gauteng.

This did not take into account possible fuel price increases to be announced by the Central Energy Fund at the end of March.

The new pipeline tariffs apply from April 2012 to April 2013.

Transnet had applied for an 83.3% hike in its allowable revenue that would have resulted in a 12.5c/ litre increase in inland petroleum product prices.

It wanted this large increase to help pay for its new multi-product pipeline (NMPP).

"Transnet has raised significant debt to fund its NMPP project and it sought substantial additional funding to satisfy ratings agencies that it had sufficient revenue to cover its debt repayments," Nersa said.

Nersa had published a draft tariff determination for public comment proposing a 76.7% rise in allowable revenue.

"There was strong opposition from many quarters to an increase of this magnitude."

Nersa had weighed various factors, including the public interest, regulatory certainty, the NMPP project reaching its peak and current and future debt funding.

"Consequently, Nersa has set petroleum pipeline tariffs that will allow Transnet to realise a 31.6% increase in allowable revenue compared to the 2011/12 tariff period."

Comments
  • Rodney - 2012-03-15 17:22

    why dont they just increase the price to R20.00 per litre and get it over with : )

      Consolata Connie Lodya - 2012-03-15 18:51

      Just wondering... Does anyone still plan on living in gauteng anylonger? I left that place years ago and tried convincing some of my friends to move down with me, I guess the government has convinced them that its much better anywhere except: limpopo and gauteng

      ronheidtmann - 2012-03-15 23:52

      @Consolata Where is down there?

  • Fernando - 2012-03-15 17:25

    I hate this :(

  • Fernando - 2012-03-15 17:29

    The cow is slowly but surely drying up. Zimbabwe, we are on our way.

  • Tallica7 - 2012-03-15 17:53

    From milking the cash cow to flogging the dead cash cow! Thank God money still grows on my back!

  • flysouth - 2012-03-15 18:14

    Eventually, quite soon, all of we sheep will have no more wool to be shorn!

  • Piet - 2012-03-15 18:14

    Why not fundthis out of the now really non existant toll fees!!

  • Trevor - 2012-03-15 18:15

    This have been coming for YEARS...Transnet totally cocked up like Eskom did and the taxpayers must pay but why cry, let the government use fuel and tolls to get the money...just be happy they not hiking income tax...right now, this is fuel to Cosatu's fire and the ANC is now going to get burnt badly...watch, it's already happening so VIVA ANC VIVA, VIVA COMRADE GORDIN VIVA...you peanut

  • Mark - 2012-03-15 18:21

    Just another parasitic parastatal used as an indirect conduit for more taxes.

  • jason.joao - 2012-03-15 18:38

    That so many development projects were left till number 99 before anyone took action, at great expense that has to suddenly be funded in the short term instead of a long-term gradual plan with at least a decade's foresight is to me, undeniable evidence of the ANC's failure as a government. I will have to get my things in order, and as soon as it's viable, relocate to the Republic of the Western Cape. At this rate, it would make sense if the business community began doing the same.

      Rob - 2012-03-16 10:41

      The reason for that was they were too busy climbing on to the gravy train to worry about the country's development. They only thing they could think of was developing their salaries, perks, bank balances, houses, fancy cars and getting friends and family members on board. Now after 20 years they have woken up and realised the way out is to make the man in the street pay up. Who is going to stop them?

  • Gregory Jurgens - 2012-03-16 07:14

    The only thing this government is capable of doing is milking it citizens money, every thing else is a calamity.

  • stalin.rudolf - 2012-03-16 08:35

    n i thought running a pipeline was a cheaper option to running trucks and trains. a price hike in JHB automatically affects the whole country. Ja, this is just beautiful. go on anc suck us dry till we are like mummys. am just disappointed in our politicians. DA is mum on the subject which automatically tells me that they approve.?

  • Lynn - 2012-03-16 09:02

    News 24 suggest investigate this issue furthur. 1. The pipeline is supposed to replace the large number of trucks that are now hauling fuel from the coast to inland fuel depots. The justification of the pipeline surely must be that it is cheaper than using road transport. So the net effect should be a long term reduction in the fuel price? 2. Various consortium bid to build the pipeline. The Transnet line won against private proposals however the costs have escalated significantly (i think double) So again investigate the reasons for the significant cost overrun

  • comurray - 2012-03-16 10:52

    Why should government top brass worry about all these increases, they don't pay for these in the first place only those who were stupid enough to vote them into power, so keep voting for them time and again and you will suffer and keep suffering until one day you pea brain suddenly realises what is causing your loss of earnings.

      Vaughan - 2012-03-16 13:29

      That's the ironic part, as long as the poor stay poor, the current corrupt regeme stays in power.

  • justin.pretorius - 2012-03-19 09:48

    One day Gauteng will be no longer the powerhouse of SA. With rising costs and more and more taxes it no longer makes sense to base yourself in Gauteng. It is more feasible for investors to invest in other African countries who are more progressive rather than regressive

  • David - 2012-03-19 11:33

    so what is the benefit of the pipeline if it increases the cost of the petrol, you might as well then continue transporting the fuel by road

  • Martin - 2012-03-30 15:27

    Why is it that the motorist must suffer the most?

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