Sasol Gas in hot water for exorbitant prices
Sasol Gas has landed itself in hot water for excessive pricing of natural piped gas for almost a decade.
The Competition Commission has referred complaints to the Competition Tribunal relating to the gas company’s mark-ups of up to 72%.
This follows a string of complaints from last year by Egoli Gas, the Industrial Gas Users Association of South Africa, and Spring Lights Gas against Sasol Gas for price hiking.
Sasol Gas is the only supplier of natural piped gas in South Africa.
“Considering the landed cost of the gas molecule and the trading cost, the Commission found the average mark-ups per gigajoule by Sasol Gas to the three complainants were, on a conservative basis,” they say in a statement.
“IGUA-SA members were charged an excessive mark-up of 55%, over nine years from 2014 to 2022. Egoli was charged an excessive markup of 72%, over nine years from 2014 to 2022 and Spring Lights Gas was charged an excessive markup of 59%, over five years from 2018 to 2022.”
“The Commission also found that Sasol Gas’ excessive pricing to gas traders and industrial customers ultimately affected the pricing to the end consumers, as gas traders and industrial customers generally pass these costs to consumers,” said CCSA spokesperson Siyabulela Makunga.
Makunga says their efforts to communicate and get information from Sasol Gas failed.
“Sasol Gas elected to file a review application in the Competition Appeal Court (CAC) challenging the Commission’s jurisdiction to investigate the three complaints”.
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