How will the prices of the different petrol grades be set?
The regulated pump prices will be determined using the same methodology as at present. This means that price setting for the unleaded grades already available (95 octane at the coast and 93 octane inland) will continue as before. The prices of the lead replacement grades will be the same as the prices of unleaded petrol of the same octane. In the inland area, where a 95 octane unleaded grade will become available for the first time, a special “demand management levy” will be introduced on this additional grade, which will increase the pump price differential between it and 93 octane petrol, initially by 10c per liter. The reason for this is that the great majority of vehicles are satisfied inland by the 93 octane fuel which is presently the highest and, in fact, only octane available. 95 octane fuel is being made available inland to satisfy the requirements of the latest technology vehicles now being introduced by the motor industry. Since motorists will now have a choice of grades and
