Competition Tribunal rules on Sasol gas price hike

JOHANNESBURG - The Competition Tribunal has ruled that Sasol Gas cannot increase the price of piped natural gas for the next six months.

The tribunal granted an interim relief application brought by the Industrial Gas Users’ Association of Southern Africa or IGUA-SA, interdicting Sasol Gas from increasing prices above 68 and 39 cents per gigagoule.

In its application to the Competition Tribunal, IGUA-SA, argued that natural gas is an essential input for its members0, which include large industrial users of gas in South Africa.

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IGUA-SA then lodged a complaint with the Competition Commission, alleging that Sasol is abusing its dominant position in the market by charging an excessive price for gas to the detriment of consumers and customers.

Sasol applied to the Competition Appeal Court for the ruling to be suspended so it could review the legalities around the ruling.

The Tribunal declined to grant the suspension.