South Africa: Fuel Price to Fall – By Less Than Hoped

Bad news for motorists: petrol prices could fall less than the widely expected R1 a litre if the minerals and energy department decides to channel some of the money towards what is known as the slate account.

The slate account is kept in terms of an agreement between the government and suppliers to determine compensation that is payable by the government to the suppliers, or by the suppliers to the government, in respect of losses suffered or profits gained by the suppliers because of fluctuations in the purchase price of petroleum products.
The continued overrecovery on petrol, diesel and paraffin prices has presented the department with a window of opportunity to finance the shortfall in the slate account.

A record of the average overrecovery and underrecovery is kept in the slate account.

AllAfrica