3 October 2008
column
Johannesburg — SASOL's European Commission fine was of course an opportunity for the South African Communist Party (SACP) to once again call for the renationalisation of the group, but it did at least raise some interesting points about the prices of Sasol's key products, the accuracy of which we do not vouch for.
They claim, for instance, the cost of producing a barrel of Sasol oil has been estimated at about $40, but Sasol charges us an import parity price of about $95 currently.
And apparently it's not just the oil market where Sasol, according to the SACP, is making a "massive and unjustifiable profit". Last year, Sasol apparently produced 1-million tons of polymers.
Quoting a Wits University study, the SACP notes that Sasol's local polymer prices are estimated to be 48% above international prices this year due to import parity pricing.
Not surprisingly, the party wants a windfall tax on Sasol's profit. But freeing up the fuels market would also lower fuel prices.
The Bottom Line is Edited By Edward West
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