Genesis' overcharge analysis informs High Court ruling in liquid fuels dispute

The liquid fuels industry plays an essential role in South Africa's national economy; providing fuel for transportation, industrial use, and agriculture, and employing a significant number of people across the value chain. Pricing signals in this industry play a critical role in driving market outcomes and the efficient allocation of resources.

Sasol Oil, a major player in this industry, retained Genesis to provide expert economic input and evidence in a pricing dispute before the High Court. Specifically, Genesis provided evidence in relation to the quantification of damages following an overcharge relating to Sasol Oil's use of Transnet’s Crude Oil Pipeline.

By blending deep industry insight with an extensive set of calculations, Genesis established a robust range of the likely overcharge suffered by Sasol. The rigour of our approach ensured that our conclusions and results were defendable and that they withstood close scrutiny when presented before the High Court.

Following the hearing of evidence, a judgment was handed down which awarded Sasol Oil damages of R3.9 billion, plus R2.3 billion in interest - a total financial award of R6.2 billion. These figures directly reflected the overcharge calculations developed by Genesis.