Page 12 - DMEA Week 01 2023

DMEA REFINING & FUELS DMEA

Diesel and gasoline prices dropped as of January 4 (BP Southern Africa: Eni)

“These reductions will bring the price of 95ULP from fuel price hikes, selling off a part of the
inland to around ZAR21.57/l and ZAR20.92/l country’s strategic crude oil stocks to fund a
at the coast, both prices close to those last seen temporary reduction in the fuel levy, reports
in March 2022,” the AA said in a statement on News24. Additionally, global diesel supply con-
December 30. straints pushed prices higher in the fourth quar-
“The forecast reduction in the wholesale ter of the year, forcing South Africa to focus on
price of diesel will bring this fuel cost down to its declining domestic refining capacity.
around ZAR21.47/l. These reductions are cer- However, there is also some good news on
tainly good news for all consumers and signal the refining side, as the new and improved
positive start to fuel pricing for the new year.” Astron Energy refinery is due to come back
According to the CEF, the reductions are online. As Glencore CEO Gary Nagle confirmed
a result of a stronger average rand/US dollar to News24 last month, the new refinery would
exchange rate and significant decreases to inter- be supplying fuel into the South African mar-
national product prices. “While the stronger ket in 2023. The refurbished plant will be able
rand is contributing to the decreases, the data to produce additional products and, over time,
shows the movement to international product could supply fuels that comply with incoming
prices is playing the most substantial role to the clean-fuel legislation, writes News24.
forecast fuel price reductions,” the AA said. This development, of course, will have no
These decreases, according to the AA, will go impact on the fuel price, which is regulated,
a long way to alleviating the fuel price burden according to Niall Kramer, an independent
and its associated impact on other prices felt by energy analyst. But it is good news for the local
millions of South Africans. economy and for manufacturing as by-products
South African government came under like LPG, bitumen, jet fuel and others have to be
immense pressure in 2022 to buffer consumers imported when refineries are closed. ™

PETROCHEMICALS
Iran to gain first methanol-to-synthetic

ethanol conversion plant via Chinese deal

MIDDLE EAST IRAN is to gain its first methanol-to-synthetic A technical know-how transfer agreement
ethanol conversion plant thanks to a deal inked struck between the two companies states that
by Iranian company Zagros Petrochemical and the plant will boast a production capacity of
China’s Dalian Petrochemical. 300,000 tonnes per year (tpy).

P12 www. NEWSBASE .com Week 01 05•January•2023