Eskom’s Application for Licence to Purchase Wholesale Diesel Rejected Leaving Mzansi Fed Up

• The Department of Mineral Resources and Energy did not grant Eskom a licence to purchase wholesale diesel
• The licence would have allowed Eskom to purchase fuel for a basic price rather than the amount with added taxes
• Eskom can appeal the Controller of Petroleum Products’ decision to the Mineral Resources and Energy Minister

JOHANNESBURG - Eskom failed to meet the requirements to be awarded a diesel wholesale licence from the Department of Mineral Resources and Energy (DMRE).

The licence would have allowed the power utility to import its own fuel. This would have allowed Eskom to purchase fuel for a basic price rather than the amount with added taxes.

DMRE said:

“To import petroleum products directly, Eskom would need a licence including import infrastructure and adequate storage facilities which they currently do not have.”

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In a statement released by the department, it said it has no control over the tax exemptions. It said if Eskom wants to be exempted from paying taxes it should approach the relevant authorities.

These taxes include the fuel levy and road accident fund levy. According to News24, Eskom relies mainly on PetroSA for diesel to supply its gas turbines.

As per the legislated application process, Eskom can appeal the Controller of Petroleum Products’ decision to the Minister of Mineral Resources and Energy, Gwede Mantashe. However, DMRE said that an appeal has not been received by the Minister.

Citizens angered by rejection of licence:

@CMK_CapeTown said:

“Of course they would decline it. ANC middlemen make billions of rands selling diesel to the SOEs.”

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@smmali1976 commented:

“That sounds good, but the question is will this administration under Ramaposa will allow that, we'll wait and see.”

@Indepentdepend1 posted:

“Comrades are benefiting.”

@acebraai27 wrote:

“Then the ANC and the cabal would not benefit from the sale of diesel to Eskom.”

@TonydaCruz added:

“An existential national energy emergency and a government department will not step in to help. Is it because the supply chain is riddled with middlemen and kickbacks to influential parasites? It is time.”

Eskom increases loadshedding to Stage 4, SA angered: "Purely deliberate"

Briefly News reported that Eskom announced that it will be rotating the loadshedding schedule between Stage 3 and Stage 4.

The power utility said the increase in loadshedding is due to the breakdowns of four generating units at its power stations, reported TimesLIVE.

Eskom added that there has been a delay in returning some units to service, which contributed to the need for more loadshedding hours.

Source: Briefly News