NERSA approves Transnet Petroleum Pipeline tariff increase

On 6 April 2016, tariffs for all Transnet petroleum pipeline systems will increase by 18.56%, the National Energy Regulator (NERSA) announced.

NERSA explained: “This above inflation increase is a consequence of the addition of further New Multi Products Pipeline (NMPP) infrastructure assets (valued at approximately R4 billion) coming into operation in the coming tariff year. In the National Energy Regulator’s view, this will strike a satisfactory balance between the various factors that the National Energy Regulator had to consider.”

When asked for clarification on who will be affected by the tariff increase, NERSA noted: “It will affect all those parts of the country that are served by Transnet's pipelines. This is essentially the Durban-Gauteng corridor, the PWV area (Pretoria, Greater Johannesburg (Witwatersrand) and Vaal Triangle (Vereeniging) and inland of the PWV area. The Cape provinces and KZN are not affected.”

This increase, if used by the Minister of Energy as a proxy for the cost of transporting fuel from Durban to Johannesburg, will affect the price of petrol, which is expected to rise. NERSA revealed: “The consequent petrol price rise is expected to be 5.4 cents per litre (c/l), on 6th April 2016, which represents a 0.44% increase on the March 2016 retail price of 93 octane petrol in Gauteng.”

The fuel price announcement by the Department of Energy is expected on Friday.