• NERSA approves 6% gas price cut by Sasol Gas for Q1 2026
• New cap lowers price to 85.10 rand/GJ, driven by reduced supply costs
• Energy-intensive sectors to benefit amid high industrial gas dependence
  

South Africa’s National Energy Regulator (NERSA) has approved a 6% cut in the maximum price of gas sold by Sasol Gas, the Sasol subsidiary that supplies, transports and markets natural gas.

The reduction applies to the third quarter of the 2025–2026 fiscal year and will be in effect from January to March 2026. Local media reported on Monday, November 17, that the gas price cap will drop from 90.57 rand per gigajoule (about $5.30) to 85.10 rand per gigajoule (about $4.98).

NERSA said the lower tariff reflects a decline in supply costs, which are influenced by oil prices, the rand exchange rate, and changes in production expenses. The adjustment is part of the regulator’s quarterly tariff review system, which requires Sasol Gas to submit detailed cost and volume data, including gas volumes sourced from Mozambique.

The decision comes at a time when South Africa’s most energy-intensive industries remain heavily dependent on gas. The petrochemical sector is one of the country’s key industrial pillars and derives about 85% of its energy use from gas, according to a 2022 report from the Department of Mineral Resources and Energy (DMRE).

Industries including cement, metals, glass, and food processing also rely on gas to operate furnaces and other high-temperature equipment, which makes substitution difficult.

To show the scale of demand, Sasol’s Secunda complex, one of South Africa’s largest industrial sites, consumes roughly 120 million gigajoules of gas annually, based on 2022 DMRE data.

With energy costs and supply reliability continuing to challenge the South African industry, the price cut offers some relief to sectors with heavy gas consumption.

Abdel-Latif Boureima