(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”