(BusinessDay SouthAfrica) – The National Energy Regulator of SA (Nersa) has approved a 31,6% increase for Transnet Pipelines, a move that could see the petrol price rising by 4c/l in Gauteng.

The extra 4c/l, which represents a 0,37% rise in the retail price of fuel, will be worked into the monthly adjustments made by the Department of Energy.

Transnet had applied for an 83,3% increase in allowable revenue.

The regulator’s decision averts another outcry over administered prices just a week after Eskom settled for a lower tariff in the final year of the current multiyear price determination.

The South African Petroleum Industry Association (Sapia), whose members are Transnet’s customers, has applauded Nersa for granting the parastatal a lower increase.

The requested 83,3% increase in allowable revenue would have resulted in a 12,5 c/l increase in inland petroleum product prices.

Nersa said Transnet had asked for a big tariff increase as a significant part of its New Multi-Product Pipeline (NMPP) will now be operational for the full tariff period. The new pipeline will raise Transnet’s regulated assets from R9,6bn in 2011 -12 to R20bn in 2012 -13.

“Transnet has raised significant debt to fund its NMPP project and it sought substantial additional funding to satisfy ratings agencies that it had sufficient revenue to cover its debt repayments,” Nersa said. Click here to read more.