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Competition Commission Targets Sasol Gas for Excessive Pricing
The Competition Commission has referred a complaint against Sasol Gas for excessive pricing of natural piped gas to the Competition Tribunal. The complaint follows a series of previous complaints made by Egoli Gas, the Industrial Gas Users Association of South Africa, and Spring Lights Gas regarding price hiking by Sasol Gas. Sasol Gas is the sole supplier of natural piped gas in South Africa as reported by Jacarandafm.
According to a statement from the Commission, they found that Sasol Gas had charged excessive markups per gigajoule to the three complainants.
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On a conservative basis, IGUA-SA members were charged a markup over nine years from to, Egoli was charged a markup over the same period, and Spring Lights Gas was charged a markup over five years.
The Commission also discovered that Sasol Gas’ excessive pricing to gas traders and industrial customers directly impacted the end consumers’ pricing, as these costs were generally passed on to them. Siyabulela Makunga, a spokesperson for the CCSA, stated that their attempts to communicate and obtain information from Sasol Gas had failed.
In response to the investigation, Sasol Gas has filed a review application in the Competition Appeal Court (CAC), challenging the Commission’s jurisdiction to investigate the complaints.
Overall, the Competition Commission’s referral of the excessive pricing complaint against Sasol Gas to the Competition Tribunal highlights the allegations of price gouging and the potential impact on consumers. The investigation and subsequent legal proceedings will determine the outcome of the case and any potential consequences for Sasol Gas.
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