ANALYSIS | Eskom forced to pay exorbitant diesel prices to PetroSA | Business

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PetroSA has been charging Eskom significantly higher prices for diesel, which the power utility needs to power its two open-cycle gas turbine plants that can help lower the level of load shedding, write Mariam Isa and Chris Yelland

SharePetroSA has been charging Eskom significantly higher prices for diesel, which the power utility needs to power its two open-cycle gas turbine plants that can help lower the level of load shedding, write Eskom has been forced to pay exorbitant prices for diesel it buys in bulk from PetroSA, the financially distressed state-owned entity which is its main diesel supplier, even as the utility battles in vain to stave off worsening stages of load shedding.

Eskom’s management first warned that they had run out of money for diesel in November 2022, after spending double the R6-billion budget allocated for the fuel in the financial year ending 31 March 2023, with four months still to go. Eskom paid R1.3 billion for this first tranche of 50 million litres of diesel, which translates to an extortionate R26.00 per litre – about R1.00 per litre above the retail pump price at which members of the public in Cape Town could fill up their car with just 50 litres of diesel.

Then on 23 January 2023, the purchase of a third tranche of R1.5 billion worth of diesel was approved by the Eskom board, which Eskom has since begun burning. This was expected to last until the middle of February 2023, but at the current high burn rate, it will run out much sooner.Eskom’s data portal shows that the load factor for its two OCGTs was nearly 50% on the 31 January 2023, compared with an average of about 16% for the financial year prior to that date.

EE Business Intelligence has further been advised that since Eskom first announced in November 2022 that it had run out of money for diesel, it had received a number of unsolicited suggestions by the Department of Mineral Resources and Energy , the Department of Public Enterprises and members of the Eskom board proposing the names of other uncontracted sources of diesel supply.

 

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Just a reminder - the energy sector is all that’s left to steel from

Why are they being charged more, if anything they should be charged less as they are a high volume user ! Once again the SA Citizen loses out. Who is responsible for the decision to charge Escom more for fuel ?

But this is how SA & Africa works.. you should know this by now..

WHY IS ESKOM NOT BUYING DIESEL DIRECTLY FROM THE REFINERIES? Can SOMEONE please explain…

Someone's getting rich...

Please pardon my language…but what a complete clusterfuck!!! Why wouldn’t Eskom_SA (government…) be allowed to buy Diesel from GwedeMantashe1’s DMRE_ZA (government…) at cost MYANC?! ESPECIALLY considering the current Loadshedding crisis, never mind business as usual?! 🤬

Hey no our cadres must eat. Dont be so rude. PetroSA charged the right price.

Eskom is also charging us exorbitant prices for electricity

Gwede Mantashe is one financialy bankrupt SOE, to bankroll andother bankrupt SOE at the expense of citizens. What a boykie

Now we must foot the bill...

Does PetroSA typically get a clean audit?

Well, you just said it. Eskom NEEDS it PetroSA is giving it to them

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EE BUSINESS INTELLIGENCE ANALYSIS: Diesel or Darkness: PetroSA charges Eskom unfair prices, extracts upfront paymentsEskom has been forced to pay exorbitant prices for diesel it buys in bulk from PetroSA, the financially distressed state-owned entity which is its main diesel supplier, even as the utility battles in vain to stave off worsening stages of load shedding. I'm glad I tried this ledy out. I have wasted too much on other platforms without gaining my profit but finally I came across this platform. I invested R1000 on her platform and within 24 hours I got R10,500 sent to my bank account Send her a DM and get started KathyDNaquin Surely your friends who are diesel suppliers are no longer benefitting. Speculation is only needed if it suits your narrative better than the actual facts. The reason Eskom’s DMRE application was denied is public knowledge. Seems investigative only has meaning when it relates to Zuma.
Source: dailymaverick - 🏆 3. / 84 Read more »