Home  »  Articles   »   Maximum Refinery Gate Price of LPG Regulations Drawn Up

Maximum Refinery Gate Price of LPG Regulations Drawn Up

June 2, 2020

Department of Mineral Resources and Energy

Regulations in Respect of the Maximum Refinery Gate Price of Liquefied Petroleum Gas have been drawn up.

The mineral resources and energy department published the regulations in Government Gazette 43367.

They were drawn up in terms of the Petroleum Products Act.

According to the regulations, the refinery gate price of liquefied petroleum gas must be based on the import parity pricing and comprise the Saudi Contract Price; freight; insurance; storage; demurrage; cargo dues and stock financing, and be expressed in Rands per metric ton.

The regulations also stipulate that the “refinery gate price must be revised every month and effective from the first Wednesday of each month and must be calculated by the CEF (SOC) Limited using the refinery gate price in the preceding month in accordance with regulation 2”.

The regulations came into effect on the date of publication.

Meanwhile, during a recent Economic Cluster media briefing on Coronavirus COVID-19 Alert Level 3, the mineral resources and energy minister, Gwede Mantashe, confirmed that the mineral resources and energy department “awaits concurrence from NERSA on Section 34 Ministerial Determination regarding the generation options under the IRP 2019. This process will enable the opening of Bid Windows for various sources that include coal, solar, wind, gas and storage”.

In terms of mining, under Alert Level 3, all deep mining operations are expected to ramp-up to full capacity bringing the mining industry to full capacity of production.

The minister added that, prior to ramping up, all mining operations are required to prepare and implement a mandatory Code of Practice for the mitigation and management of Covid-19.

In another development, the chairperson of the portfolio committee on mineral resources and energy, Sahlulele Luzipo, has welcomed the recent announcement that every company must have a Covid-19 plan, as well as a dedicated compliance officer in order to curb the spread of the Coronavirus at the workplace.

The chairperson also called on the department to consider having a “dedicated health specialist, over and above the regular mine health and safety inspectors, who will specifically take lead in the inspection of compliance with Covid-19 plans”.