Question NW1009 to the Minister of Mineral Resources and Energy
25 April 2022 - NW1009
Steenhuisen, Mr JH to ask the Minister of Mineral Resources and Energy
(1) What is the (a) volume in barrels, (b) average cost in Dollars per barrel and (c) value of the Republic’s strategic fuel reserve currently; (2) (a) how often was a rotation of the strategic fuel reserve undertaken (i) in the (aa) 2019-20 and (bb) 2020-21 financial years and (ii) since 1 April 2021 and (b) what was the reason for each rotation that was undertaken in each case; (3) to what extent will the Republic’s strategic fuel reserve shield South Africans from the predicted fuel crises caused by the Russian Federation’s invasion of Ukraine? NW1257E
Reply:
(1)(a) Whilst there are 10 million barrels of crude oil in the terminal, only 8.7 million barrels are accounted as inventory and the balance is working stock.
(b) The cost per barrel is as per prevailing market rate. Each grade of Crude oil is priced differently at a premium or discount of Brent Crude Oil as prevailing in the market. As at the 4th of April Brent Crude Oil was trading at $104/bbl.
(c) As at the 28th of March 2022 the cost value of the strategic reserves in tank was R 1 750 764 252. This is what would be reflected on the annual financial statement in terms of the accounting rules.
(2) There has not been any rotation of strategic reserves during the abovementioned periods.
(3) As per the joint statement issued by the National Treasury and the Department of Minerals and Energy, the Strategic stock will be utilised to provide a R 6 Billion cover for revenue lost in the reduction of the general fuel levy for two months. This will effectively “reduce the general fuel levy for Petrol from R3.85 per litre to R2.35 per litre and reduce the general fuel levy for diesel from R3.70 per litre to R2.20 per litre”