Scenario 6

Green Connection's

Someone has to pay

Description

PetroSA was established to (among other things) manage the production and refinement of petroleum products, largely via its MosselBay facility. With the closure of that facility, it now mostly acts as a middle person for supplying diesel to Eskom. Eskom has applied for (and been turned down) a licence to run its own import facilities and reduce costs.

Set-up

Loadshedding is sending demand for diesel sky high, and by a quirk of legislative fate, Eskom is not able to go to the markets directly to procure and import this fuel for its open combined gas turbine (OCGT) generators[27].

The dilemma

You have the licences needed to procure and import diesel. Do you…

Your options

• Use your experience to find the very best prices on the open market and pass this saving on to Eskom in a spirit of national unity?
• Recommend Eskom be given permission to procure its own fuel, cutting out the middle people?
• Enter into a whole bunch of secret procurement contracts, and then charge Eskom higher than market rate for the fuel when it is landed?