What do you think are the major issues governing crude oil and petroleum product prices in South Africa?
South Africa imports around 55% of its petroleum product requirements in the form of crude oil and this is then re- fined locally. Crude oil is imported mainly from OPEC countries such as Saudi Arabia, Iran, Nigeria and Kuwait. Of the remaining 45% that is needed to supply South Africa with petroleum products, 40% of the crude equivalent is supplied by Sasol (33% from coal) and Mossgas (7% from gas) with only 5% of the crude oil actually being produced from the Oribi and Oryx fields off Bredasdorp. This means that South Africa is somewhat vulnerable when crude prices are high internationally. Because, petroleum product prices in South Africa are based on international product prices, it is difficult to curb prices whilst international prices are high. Of course, a margin for the oil companies and also for the dealers is included in the pump price, as are government taxes. However, it is important to point out that in South Africa, taxes are based on a fixed cost per litre (cpl) basis,
