Share

Transnet granted 31.6% pipeline hike

Johannesburg - South Africa’s energy regulator said on Thursday it has granted logistics group Transnet a 31.6% increase for the next financial year in the revenue it derives from moving fuel through pipelines.

A spokesperson at Transnet, which had applied for an 83.3% increase, said the company still needs to examine the decision before it can comment on the impact the difference may have on its financial commitments and capital projects.

The increase, which will kick in from April, is to be used to pay for a new pipeline launched in January which is Transnet’s biggest capital project to date.

Rates vary on the more than 20 fuel pipelines that the company operates.

Some rates for 2012/13 were reduced, while others were hiked by as much as 30%, said Rod Crompton, the regulator’s member responsible for petroleum pipelines.

Rates on the main route between Durban and Johannesburg, which supplies fuel from coastal refineries to the economic hub in Gauteng, were increased by 22%.

The 24-inch new multi-product pipeline running over 550 km replaces an old 12-inch line from Durban to Johannesburg, which is nearing the end of its life.

The cost of the entire project has been put at about R23.4bn.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.02
-0.4%
Rand - Pound
24.17
-0.3%
Rand - Euro
20.66
-0.3%
Rand - Aus dollar
12.39
+0.2%
Rand - Yen
0.13
+0.4%
Platinum
910.20
-1.4%
Palladium
1,008.00
-5.4%
Gold
2,155.32
-0.2%
Silver
24.90
-0.6%
Brent Crude
86.89
+1.8%
Top 40
66,252
0.0%
All Share
72,431
0.0%
Resource 10
53,317
0.0%
Industrial 25
100,473
0.0%
Financial 15
16,622
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders