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Energy Department to find out how it costs the base fuel price

The Energy Department has invited public comments on how it calculates the benchmark rates for fuel, diesel and illuminating paraffins, known as the price of basic fuels.

This is the price of fuel before tax, transport and other costs.

The chapter in the discussion paper published last week in the government newspaper calls for the publication of the Fuel Framework Directive by the end of January 2005.

BFP is one of the four elements that make up the cost of pump fuel in South Africa. Others are the general fuel tax, the traffic accident fee and distribution, transport and wholesale costs.

The document includes several proposed adjustments to the formula it uses to calculate BFP by changing the reference markets it uses to calculate import costs in order to reduce the number of days refiners have to store fuel.

Although Minister of Energy Jeff Radebe said that his department is also rIt is not included in the document when looking for the possibility of setting a fuel price limit.

The Energy Department said it would require a revised formula for the introduction of the base fuel base in 2019 after "extensive consultation with all wholesalers". It did not give a more accurate date.

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