| The
Department of Energy's Hydrocarbons and Energy Planning Branch
is responsible for coal, gas, liquid fuels, energy efficiency,
renewable energy and energy planning, including the energy
database.
The liquid fuels industry was licensed in 2005 for
the first time. The objectives of the licensing framework
as detailed in the Petroleum Products Amendment Act 2003,
Act 58 of 2003, include:
 |
Promoting
an efficient manufacturing, wholesaling and retailing
petroleum industry; |
|
Facilitating
an environment conducive to efficient and commercially
justifiable investment; |
|
Promoting
the advancement of historically disadvantaged individuals;
and |
|
Creating
employment opportunities and small businesses in the petroleum
sector. |
South Africa produced 23 571 million litres of liquid
fuels product in 2005, according to SAPIA. About 36 percent
of the demand is met by synthetic fuels (synfuels), which are
produced locally, largely from coal and from natural gas. Products
refined locally from imported crude oil meet the remaining 64%.
The petrol price in South Africa is linked to the price of crude
oil in international markets and is quoted in US dollars (US$)
per barrel. International petrol prices are essentially driven
by supply and demand for product in a particular market.
Crude
oil prices combined with the Rand/Dollar exchange rate therefore
have a major impact on petrol prices. A crude-oil refinery's
biggest input cost is crude oil. In order for a refinery to
make a profit, the price for the product manufactured from crude
oil has to be higher than that of the crude oil price. When
crude oil prices increase - as they have over the past months
- the petrol price has to increase so that crude oil refineries
are able to cover their own costs. |
