Stats-SA has with the publication of the March 2016 indices in P0151 revised and updated all of the diesel indices from Jan '08 to present. Their “Clarifying Note” in this regard is included at the end of this advice.
The new diesel indices from Jan ’08 to Mar ’16 will also be available for download from our website (see section: Services > Contractual Affairs > Contract Price Escalation or click here) for CPA in a separate file as described below.
Firstly, if you have downloaded the SAFCEC Excel Indices File and Clarifying Note of 03 May 2016 from our file library, please ignore and permanently delete these files. At the time of issue, it was contemplated that new diesel indices can be converted to the old diesel indices, as well as to the 2008 = 100 basis (as reflected in Old Table A, and the Old and New Tables B). This is not possible as noted below.
The implications of the new diesel indices for CPA calculations are as follows: -
The new indices for diesel are provided from Jan ‘08 in “New Table A 2012 = 100” as reflected in the SAFCEC spreadsheet (16.03 SAFCEC_CPAF_Mar_2016 Revised - DIESEL Change).
All CPA calculations on the basis of 2012 = 100 basis going beyond Feb ‘16, will require re-calculation by incorporating these new diesel indices being made available as stated above from Jan ‘08. Indices can be found in “New Table A”.
Further to Point 1, and continuing with CPA calculations using the old diesel indices will not be possible as no conversation possible from new diesel indices to the old diesel indices; Thus previous “Table A”, now referred to as “Old Table A” and is discontinued.
A case-by-case analysis and decision will be required for projects completed (i.e. up to Feb ‘16) for which the final accounts are not yet finalised / submitted / agreed as to whether it would be permissible for re-calculating CPA using the new diesel indices.
Special consideration should be given where CPA is calculated on 2008 = 100 basis for which indices were previously provided in “Table B”, as this table is also now discontinued. In this regard, it is advised to contemplate, and parties will need to agree, to rather shift to and re-calculate all CPA on the basis of 2012 = 100 basis. This option applicable where projects are ongoing beyond Feb ’16, and having base dates prior to Jan ‘12.
The conversion of new diesel indices being 2012 = 100 basis, to 2008 = 100 basis, not possible as per advice received from Stats-SA. Please note that Stats-SA provided the new diesel indices from Jan ‘08 onwards. The excel file (16.03 New Diesel Indices Jan 08 to Mar 16) containing the new diesel indices can be found in the upload section of the SAFCEC website for CPA under March 2016
Stats-SA Note on Diesel in the Statistical Release P0151
Stats SA has an ongoing programme of updating and improving the quality of its data for the suite of indices falling under the category of Production Price Indices (PPI). From time to time, these improvements may result in changes to indices that are not a direct result of price changes.
The index of diesel that are used in the Contract Price Adjustment Provisions (CPAP: P0151) for selected materials (Table 4). These tables are not currently published but are available to users on request.
Due to improved methodology and a clean-up process the following indices will be discontinued from Table 4:-
Diesel at wholesale level: Witwatersrand
Diesel at wholesale level: Coastal
Diesel fuel: Coast and Witwatersrand
Diesel fuel: Retail Metropolitan and other urban areas
Diesel fuel: Retail Metropolitan areas
A new improved series will be published in future (March 2016 publication) and will be backdated to January 2013. Indices will be available for:-
Diesel fuel wholesale - Total
Diesel fuel wholesale - Coastal
Diesel fuel wholesale - Inland
Diesel fuel retail - Total
Diesel fuel retail - Coastal
Diesel fuel retail - Inland
A linked series will be available on request for the following:-
Diesel at wholesale level: Witwatersrand linked to Diesel fuel wholesale - Inland
Diesel at wholesale level: Coastal linked to Diesel fuel wholesale - Coastal
Diesel fuel: Coast and Witwatersrand linked to Diesel fuel wholesale - Total
Diesel fuel: Retail Metropolitan and other urban areas linked to Diesel fuel retail - Total
Diesel fuel: Retail Metropolitan areas linked to linked to Diesel fuel retail - Total
For further clarification and assistance please do not hesitate to contact Frikkie Oosthuizen; Executive: Contractual Affairs & Support Services; Tel +27 11 409 0900; email@example.com