South Africa\u2019s economy will face a price hike by Sasol Ltd for gas supply that will add about R325 million ($20 million) a month to the cost, according to an association of users of the fuel.<\/p>\n
\u201cThe current gas pricing uncertainty holds risk\u201d for the biggest buyers, the Industrial Gas Users Association of Southern Africa said in a statement Wednesday, referring to a 96% price increase that took effect Aug. 1.<\/p>\n
Sasol delivers gas it produces in Mozambique through the Rompco pipeline to its own operations as well as to consumers. South Africa otherwise lacks significant gas production and alternative means to import the fuel.<\/p>\n
The National Energy Regulator of South Africa last week said it had been alerted to \u201cimminent excessive increases in gas prices\u201d by one of its licensees, which it didn\u2019t identify, and would investigate any unreasonable pricing.<\/p>\n
\u201cSasol Gas recognizes the impact of the increase in prices on customers,\u201d the company said in an emailed statement responding to the regulator. The price was determined by using a methodology approved by Nersa, it said.<\/p>\n