Basic Fuel Price structure for petrol under review

Basic Fuel Price structure for petrol under review
06 Dec 2018

The Basic Fuel Price structures for petrol, diesel and illuminating paraffin are under review.

The energy department invited comment on the discussion document in Government Gazette 42053.

A new position on reference markets is proposed, namely, “70% FOB Singapore and 30% FOB Arab Gulf for (i) middle distillates (diesel and illuminating paraffin) and 60% FOB Singapore and 40% FOB Mediterranean for (ii) petrol”.

The department also wants the 15% premium to be removed from the freight rate and actual freight costs to be obtained from the relevant international pricing agencies.

The status quo on insurance costs should remain and evaporation or ocean loss be reduced from 0.3% to 0.1%.

The department also wants demurrage days to be “reduced from 3 to 2 days based on the information from the Transnet National Port Authority which shows that it takes, on average, 1.5 days to dock and offload petroleum products vessels at their harbours”.

Comment on the proposals is invited until 31 January 2018.

Meanwhile, the department recently briefed parliament on the amendment to the Convention on Physical Prevention of Nuclear Material (CPPNM) and facilities.

According to the department, the amendment broadens the scope of the CPPNM to also include physical protection requirements for nuclear facilities and nuclear material in domestic use, storage and transport.

The Convention also provides for the sharing of information on potential and actual attacks on nuclear material and facilities.

The Convention was tabled before cabinet in May 2018. Cabinet approved that the Convention be presented to parliament.

(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)
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