Department of Mineral Resources and Energy
28 October 2019
Draft 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 proposed regulations in Government Gazette 42789 for comment.
The draft regulations were drafted in terms of the Petroleum Products Act.
They set out how the refinery gate price of liquefied petroleum gas is to be calculated.
The refinery gate price is to be based on import parity pricing and consist of the following elements including Saudi contract price; freight; insurance; storage; demurrage and cargo dues expressed in Rands per metric ton.
The draft regulations also stipulate that the refinery gate price must be 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.
Comment on the draft regulations is invited within 60 days of the date of publication of the notice.