IGUA SA interdicts Sasol from raising the price for the next 12 months

The Industrial Gas Users Association of South Africa has brought an interim relief application before the Competition Tribunal in Pretoria to interdict Sasol from raising the price of pipeline gas for the next 12 months.

The association argues that Sasol has brought forward a suspension application against the summons imposed on it with the intention to completely avoid scrutiny into its profits.

The proposed increase by Sasol will see the prices of pipeline gas rising from R68 per giga/joules to R133 per giga/joules.

The Industrial Gas Association’s Advocate Kate Hofmeyer says Sasol’s proposal is an abuse of its dominance in this market.

“The uncontroversial facts in this case point towards interim state relief being granted to preserve an existing situation and to temporarily safeguard a situation where interests are at risk. Essentially, what the association comes before you today is for just such an order, an order that will preserve the current price pricing level at R68/GJ and not permit any increase on that for the temporary period that the act permits as an outside margin.”

Video: Day 2 of Competition Tribunal probing Sasol for excessive gas pricing

[embedded content]