Sasol Oil cooperates with Competition Commission in bitumen pricing case

4 March 2010

The Competition Commission (the Commission) today announced that it has referred the findings of their investigation into bitumen pricing to the Tribunal for adjudication.

Sasol Oil and Tosas, as leniency applicants, have been granted conditional immunity from prosecution and no penalty will be sought by the Commission against Sasol or its subsidiaries subject to the leniency becoming unconditional.

As announced by Sasol on 19 January 2009, the company's proactive competition law compliance review revealed initial concerns of non-compliance with competition laws, relating to Sasol Oil. Sasol confirmed at the time that it was cooperating with the Competition in its investigation into bitumen pricing.

The area of concern relates to the use of a bitumen pricing methodology agreement reached within the South African Bitumen and Tar Association (SABITA), of which Sasol Oil and Tosas are members, along with other oil companies.

While we regret this contravention, we hold the view that it was of a technical nature and was not secretive. The agreement on the pricing methodology by SABITA was at the request of the customers of SABITA members.

Our proactive review into competition law compliance revealed this matter in September 2008 and lead to the granting of this conditional leniency.

Maurice Radebe, Managing Director of Sasol Oil said the company approached the Commission in line with the authority's leniency policy. "When we uncovered areas of non-compliance in our bitumen business more than a year ago, we brought it to the Commission's attention and applied for leniency. The Commission's Corporate Leniency Policy requires that as a leniency applicant we not disclose the details of our leniency application until the Commission has completed its investigation."

Fay Hoosain, Sasol's group chief legal advisor for competition law said: "Any infringement of any laws is not tolerated within Sasol and thus a finding of any breach whether technical or otherwise is of concern and great disappointment to our organisation."

While the competition law compliance review was completed in 2009, the critical work of ongoing education and compliance remains a continuing priority within Sasol.