Question NW1815 to the Minister of Public Enterprises

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15 June 2023 - NW1815

Profile picture: Groenewald, Dr PJ

Groenewald, Dr PJ to ask the Minister of Public Enterprises

(1)(a) What total price does Eskom pay for the purchase of diesel and (b) how is the price structured; (2) (a) which suppliers and/or companies are they buying diesel from currently and (b) what is the total price in each case; (3) (a) for what period has the suppliers been contracted and (b) what are the provisions in the specified contracts with regard to the price in each case? NW2066E

Reply:

According to information received from the Eskom

(1)(a)

Eskom is buying diesel at the wholesale list price published by the Department of Energy on a monthly basis. Eskom then pays the wholesale list price less the negotiated discount.

(1)(b)

Delivered price: Wholesale list price less discounts.

(2)(a)

Eskom obtains negotiated discounts below the wholesale price list that varies across the suppliers.

  • Astron
  • BP
  • Engen
  • Shell
  • PetroSA

(2)(b)

The discounts are contractual between Eskom and Service Providers and not for public consumption. In addition, there is a new tender currently undergoing internal approval process hence the sensitivity of sharing discount rates.

(3)(a)

All contractors have been contracted for 5 years: 01 October 2019 to 30 September 2024.

(3)(b)

Price follows monthly fluctuation as per the price list issued by the Department of Energy.

Remarks: Approved / Not Approved

Jacky Molisane Pravin Gordhan, MP

Acting Director-General Minister

Date: Date:

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