The Department of Mineral Resources and Energy clarifies its position on Eskom’s diesel crisis.
The Department of Mineral Resources and Energy says that Eskom has many options open to it to deal with its diesel problems, including applying for exemptions for fuel taxes.this past week, quoting Eskom chief executive Andre de Ruyter as saying that the DMRE is dragging its feet in giving the embattled power utility a diesel wholesaler licence so that it can save money when making diesel purchases or allowing the group to import diesel directly.
The DMRE confirmed that Eskom applied for the wholesale diesel licence; however, it noted that it was not awarded since Eskom did not meet certain requirements, the details of which have been shared with the group. De Ruyter said that if Eskom were able to get diesel at wholesale prices, the company would be able to save as much as R6 a litre for the fuel, cutting costs significantly.“With regards to claims that there is a potential saving of R6 per litre between the Basic Fuel Price and the Wholesale price, the DMRE would like to indicate that the R6 is mainly made up of taxes that the DMRE has no control over,” it said.
However, the turbines are extremely expensive to operate, especially in the last year when diesel prices rocketed in the wake of the Russian invasion of Ukraine, among other global supply issues.
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