Nersa salmmed over gas price hikes amid fears of further strain on industry

THE Industrial Gas Users Association of Southern Africa (IGUA-SA) is raising alarms over the National Energy Regulator of South Africa's (Nersa) recent approval of a 4% increase in Sasol Gas's maximum gas price.

- BANELE GININDZA

This decision, which translates to a staggering 20% rise over the year, is expected to exacerbate the challenges facing South Africa's already pressured industrial landscape.

In June, Nersa had permitted Sasol Gas to adjust prices quarterly based on fluctuating gas acquisition costs.

Following this directive, Nersa confirmed Sasol Gas's adjustment from R87.04 per GigaJoule (GJ) to R90.57/GJ for the second quarter of the 2025/2026 financial year.

Various factors contributed to this spike, including rising gas costs from Mozambique, fluctuations in oil-linked derivatives, currency exchange variations, and changes in the US Producer Price Index (USPPI).

Nomfundo Maseti, Nersa's full-time regulator member primarily responsible for piped gas regulation, clarified that the adjustment does not necessarily mean that Sasol Gas will raise prices to match the maximum limit.