New Petrol Grades

What octane grades of petrol are available in South Africa after 1 January 2006?

The government determined that three octane grades (namely 91, 93 and 95) of unleaded petrol (ULP) are permitted in South Africa (in both the coastal and inland regions) after 1 January 2006. Market demand determines which of these grades is available in the different parts of the country. Motorists can not expect to find all octane grades available in all locations, but can expect to find a grade suitable for their particular vehicle wherever they may go in South Africa.

In addition, two octane grades of lead replacement petrol (LRP) are permissible - a 95 octane grade at the coast and 93 octane grade inland.

What octane grades will Engen Petroleum Ltd market from January 2006?

*The predominant demand at the coast is expected to be for 95 octane petrol. For this reason, Engen will not market a 93 unleaded petrol initially, but may do so at a later stage once customer preferences have been established.

How are the required octane grades achieved without the addition of lead?

All the South African refineries have invested in additional facilities and more sophisticated refining technology to enable them to produce greater volumes of "high octane" blending components. To the extent that octane demand exceeds the ability of local refineries to supply, there will be imports of "high octane" blending components or of "high octane" petrol to ensure that demand is satisfied.

How has the Engen Refinery achieved required octane?

The Refinery has made-up the required octane by hardware and catalyst changes as well as by exporting low octane gasoline material. Any shortfall in octane requirements is made up by blending with imported high octane material.

Has there been a change in the level of benzene in petrol after 1 January 2006?

Benzene levels remained in line with the proposed regulated levels which took effect in 2006. These are in line with the equivalent EURO specifications. The benzene levels of Engen Refinery petrols will remain significantly below regulated requirements.

How are the prices of the different petrol grades set?

The regulated pump prices are determined using the same methodology as always. This means that price setting for the unleaded grades already available (95 octane at the coast and 93 octane inland) has continued as before. The prices of the lead replacement grades is the same as the prices of unleaded petrol of the same octane.

In the inland area, where a 95 octane unleaded grade has become available for the first time, a special "demand management levy" has been introduced on this additional grade, which increased the pump price differential between it and 93 octane petrol, initially by 10c per litre. The reason for this is that the great majority of vehicles are satisfied inland by the 93 octane fuel which was the highest and, in fact, only octane available. 95 octane fuel was made available inland to satisfy the requirements of the latest technology vehicles being introduced by the motor industry. To avoid octane wastage, since motorists now have a choice of grades, it is desirable that only those who really need 95 octane choose to use it. The inland demand management levy has been introduced to incentivise motorists to consider their choices carefully. At the coast, where the predominant demand was for higher octane fuel (in general, the lower the altitude the higher the octane requirement of a vehicle), and 95 octane unleaded was the only available unleaded grade, there will be no additional levy.