JSE-listed chemicals and energy company Sasol’s gas subsidiary Sasol Gas had submitted information to the National Energy Regulator of South Africa (Nersa) in support of its maximum gas price adjustment for the third quarter of the 2025/26 financial year, covering the period from January 1 to March 31, 2026.

As a result of the adjustment, Sasol Gas’ maximum gas price for the third quarter is R85.10/GJ a year, which represents a 6% decrease from the previous quarter’s maximum gas price level of R90.57/GJ, Nersa says.

The decrease is primarily attributed to costs associated with new gas from Mozambique, driven by movements in oil-linked derivatives, exchange rate fluctuations and changes in the US Producer Price Index, the regulator notes.

“The extent of the adjustment does not necessarily translate into the same amount of adjustment on actual gas prices that Sasol Gas charges to its customers and it is expected of Sasol Gas to charge gas prices lower than the maximum price,” says Nersa piped-gas regulation regulator member Nomfundo Maseti.

The adjustment is a positive step as it reduces the maximum price to a lower level where customers will benefit from lower prices that Sasol Gas will charge in line with the adjusted maximum price, she adds.

The quarterly approach to gas-price adjustments follows Nersa’s decision on June 30 this year, which allowed Sasol Gas to adjust the approved maximum gas price quarterly, subject to changes in the cost of gas acquisition.

Sasol Gas must provide Nersa with cost and pricing information on a quarterly basis to demonstrate that adjustments to its maximum gas price are reasonable, justifiable and necessitated by cost variation.

The regulator has verified the most recently provided information against contractual provisions and performed integrity tests to confirm the accuracy of the reported gas volumes and the increase in acquisition costs.

These reported volumes were further verified using gas volume balance data received from Mozambique, the regulator says.

Meanwhile, Nersa's quarterly monitoring approach is designed to safeguard consumers by ensuring that maximum prices remain reasonable and justified.

It also aims to promote accountability by requiring licensees to substantiate adjustments with verifiable cost data, and enhance transparency through ongoing scrutiny of costs and gas price changes.