- The National Energy Regulator of South Africa (NERSA) announces that the Energy Regulator, at its meeting held on 30 June 2025, made the following decisions regarding Sasol Gas pricing applications.
- Sasol holds a monopoly on gas supply in South Africa but its main source of natural gas from Mozambique is set to run out in the next two years. Read more
The Energy Regulator decided not to approve the following:
- Sasol Gas’s application for a clawback of R1.80/ GJ per annum for the difference in gas price between (i) the approved Maximum Gas Prices for the 2023/24 financial year (FY) and (ii) the gas price charged to customers for the period 1 July 2023 to 31 December 2023.
- The level of trading cost applied by Sasol Gas as it was overstated and included unjustified costs relating to clawback.
Related news: Sasol unveils bridging plan to avert gas cliff in South Africa
The Energy Regulator approved Sasol Gas’s application for a maximum price of gas for the period 1 July 2025 until 30 June 2026 as follows:
- Maximum price of gas of R87.04/GJ per annum for end-user customers for the period 1 July 2025 to 30 September 2025, which may be adjusted quarterly based on Sasol Gas’s verified cost of acquisition until June 2026.
- Maximum price of gas of R82.69/GJ per annum for third-party traders and resellers of gas for the period 1 July 2025 to 30 September 2025, which may be adjusted quarterly based on Sasol Gas’s verified cost of acquisition until June 2026.
- A minimum of 5% discount from the maximum gas price be provided to third-party traders and resellers.
- The quarterly adjustment of the maximum price with a three-month lag in its implementation until 30 June 2026.
- On a quarterly basis, Sasol Gas must provide NERSA with cost and pricing information that demonstrates reasonable cost for the Energy Regulator’s monitoring and approval, whichever is necessary
- NERSA may review and subject the price adjustment to a compulsory consultation if there is a significant change in the cost of gas affecting the maximum gas price.
The approved maximum price excludes the value-added tax (VAT). The approved maximum prices of gas will remain effective until the date of approval of a new maximum price by the Energy Regulator.
“The approval of Sasol Gas’s maximum gas price is a significant step, as it ensures fair pricing, affordability, and sustainability in the piped-gas market. It mitigates limited competition, allows licensees to recover costs, and promotes industry development while providing affordable access to gas,” said NERSA in a statement.
Author: Bryan Groenendaal
