DECREASE YOUR FUEL CONSUMPTION BY 20%, SAYS MINERALS AND ENERGY

Issued by: Government Communications Information System

5 September 2000

According to the Automobile Association (AA): "A large percentage of motorists drive around with badly tuned engines, which means that money is literally being blown out through the exhaust pipe!" The Department of Minerals and Energy (DME) urges fuel consumers to follow these consumption-conscious driving techniques to make a litre of petrol go further:

• Close your windows because an open window creates a drag that increases fuel consumption by as much as 20%.
• Use multigrade oil in your engine because it will reduce drag.
• Use a logbook to record your fuel purchases and kilometers traveled to set new economy goals and to spot radical differences in the performance due to mechanical malfunction.
• Never overfill the fuel tank of your car.
• Use the correct octane fuel - a higher octane rating does not improve the performance of the vehicle.
• Switch to radial-ply tyres because it offers less rolling resistance and longer life than the cross-ply variety.
• Avoid soft tyres, tyre pressure that is too low not only increase consumption, but also markedly reduces tyre life.
• Avoid stop-start driving.

Regarding current fuel prices, the Organisation of Petroleum Exporting Countries (OPEC) has not yet decided to further increase its crude oil production and a decision in this respect is anticipated to be taken at its next meeting in Vienna on 10 September 2000. The global shortage in the supply of crude oil results in the current high petroleum prices. A shift in the demand from petrol to diesel and other middle distillates is the result of the anticipation of the Northern Hemisphere winter heating season, specifically the USA and Europe. This demand cannot be satisfied by the US and European refining system nor from refineries in Asia.

The basic prices of petrol, diesel and illuminating paraffin have once again increased during the current review period. In addition to these basic price increases the average Rand / Dollar exchange rate also deteriorated slightly and contributed to approximately 2,0c/l increase in the above products.

It is anticipated that the following price adjustments will be effected on 6 September 2000:

• PETROL : 6,0 c/l increase;
  
• DIESEL : 14,0c/l increase; and
  
• ILLUMINATING PARAFFIN : 13,0c/l increase.

ENQUIRIES:
Mr. Kanyo Gqulu
Tel: (012) 317 9537
Fax: (012) 322 4954
Cell: 083 29 333 77