Loading...
See More

Pipeline tariff to add to fuel price

Mar 15 2012 17:15 Sapa

Related Articles

Transnet granted 31.6% pipeline hike

India’s top Iranian oil buyer to cut imports

Fuel shortages to ease 'soon'

FRA: No need for petrol panic buying

Petrol price to spike next week

Brent above $125 on Greek hopes, US data

 
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."
petrol price
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
27 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

New forms of digital technology are changing the very ways in which entrepreneurs run their businesses.
 
 

6 life hacks you simply have to know

A few simple tricks can make your life so much easier!

 
 

For chic geeks...

Device lets disabled people talk through their nose
It’s THIS easy for someone to steal your ATM pin!
This is why you should install iOS 8
17 photo illusions that look so real

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...