News | DMRE rejects Eskom’s bid for diesel licence

The department of mineral resources and energy (DMRE) has rejected Eskom’s application for a diesel wholesale licence. Eskom applied for the licence to import its own fuel so that it could buy diesel at the basic fuel price – instead of the wholesale price. This would reduce the price from about R23 per litre to around R16, according to outgoing CEO André de Ruyter. READ | Eskom can save billions with diesel import licence – but De Ruyter says progress with DMRE is slow The licence would have saved Eskom around R3 billion on fuel costs over the past year or so. Eskom currently relies mainly on PetroSA for diesel to supply its open-cycle gas turbines, which often play a critical role in buffering South Africa from more adverse stages of load shedding. In a statement on Thursday, the DMRE said that to import petroleum products directly, Eskom would need a licence including import infrastructure and adequate storage facilities which they currently do not have. “The DMRE confirms that Eskom has applied for the diesel wholesale licencse (sic), however it was not awarded since the application did not meet certain requirements, the details of which have been shared with Eskom as the applicant.” Eskom can appeal the decision to Gwede Mantashe, Minister of Mineral Resources and Energy. But the DMRE says Mantashes hasn’t received the appeal. “With regards to claims that there is a potential saving of R6 per litre between the Basic Fuel Price and the Wholesale price, the DMRE would like to indicate that the R6 is mainly made up of taxes that the DMRE has no control over. However, if Eskom wants to be exempted from paying taxes which includes the Fuel Levy and Road Accident Fund Levy, Eskom should approach the relevant authorities,” the DMRE said.

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Published on : 2022-12-30 07:31:20

Source :fin24

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