Sasol has rejected preliminary findings by the National Energy Regulator of South Africa that the piped-gas price increase it seeks to implement for FY2023 is too high. South Africa’s leading chemicals and energy group says the maximum gas price of R120 per gigajoule that it wants to effect – which is almost double the price it currently charges – accounts for the higher operational costs it has had to stomach and the risk associated with investments, and also incentivises new investments.
Price gouging The latest developments come in the same month the Competition Commission said it believes Sasol has a possible case to answer for selling natural piped gas to customers at excessive prices. Earlier this month, the commission referred Sasol to the Competition Tribunal – the adjudicator of competition matters – for prosecution after the commission’s investigations found that Sasol sold natural gas to customers at prices marked up by up to 72% for almost a decade.