2014 Pricing

Good Day Friends

Well, the new year has started and most of us are still trying to find our feet after a hectic season.  We were very fortunate this past December due to the fact that there were very little disruptions in the supply of LPGas.  Most of our customers were pretty well stocked throughout this busy season.

Sadly we have noted that the ZAR is trading at R 10-75 levels against the US$.  This inflates our cost dramatically and with the erratic supply from refineries during the colder months, imports will be a reality that we shall have to cope with.  Imported gas is obviously more expensive than locally produced product.  This will surely impact on the pricing of all fuels going forward into 2014.

The graph below shows the average pricing of Brent Crude Oil in ZAR since march 2007.

This escalation in the price of LPGas over the last seven years is disturbing, to say the least.

We are holding thumbs for lower oil prices and a stronger Rand in 2014.




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