- The National Energy Regulator of South Africa (NERSA) today notified all stakeholders that it considered and noted Sasol Gas (Pty) Ltd’s (Sasol Gas) adjustment of its maximum gas price for the second quarter of the 2025/26 financial year (FY2025/26).
- Sasol Gas’s maximum gas price for Quarter 2 is escalated to R90.57/GJ per annum, representing a 4% increase from the previous quarter’s maximum gas price level of R87.04/GJ.
- This adjustment follows NERSA’s decision on 30 June 2025, which allowed Sasol Gas to adjust the approved maximum gas price quarterly, subject to changes in the cost of gas acquisition.
- In accordance with this decision, Sasol Gas must provide NERSA with cost and pricing information on a quarterly basis to demonstrate that adjustments to its maximum gas price are reasonable, justifiable and necessitated by cost variation.
In compliance with the NERSA’s decision, on 15 August 2025, Sasol Gas submitted information to NERSA in support of its maximum gas price adjustment for Quarter 2 of FY2025/26 covering the period 1 October to 31 December 2025. NERSA has verified the information against contractual provisions and performed integrity tests to confirm the accuracy of the reported gas volumes and the increase in acquisition costs. These reported volumes were further corroborated against gas volume balance data received from Mozambique.
The increase is primarily attributed to gas costs associated with new gas from Mozambique, driven by movements in oil-linked derivatives, exchange rate fluctuations and changes in the US Producer Price Index (USPPI).
‘For clarity, NERSA would like to emphasise that the extent of adjustment does not necessarily translate into the same amount of adjustment on actual gas prices Sasol Gas charges to its customers. It is expected of Sasol Gas to charge actual gas prices lower than the maximum price,’ said Ms Nomfundo Maseti, Full-Time Regulator Member Primarily Responsible for Piped-Gas Regulation.
This quarterly monitoring approach is designed to:
- safeguard consumers by ensuring that maximum prices remain reasonable and justified;
- promote accountability by requiring licensees to substantiate adjustments with verifiable cost data; and
- enhance transparency through NERSA’s ongoing scrutiny of costs and gas price changes.
Author: Bryan Groenedaal
