South Africa: Eskom’s Diesel Spending Surpasses US$7 Billion In Seven Years

South Africa’s power utility, Eskom, has spent a total of R121.5 billion (approximately US$7 billion) on diesel over the past seven years — a staggering financial outlay as the company strives to balance operational demands with cost efficiency.

The figures were shared by Eskom earlier this week.

In the 2019 financial year, Eskom budgeted R1.024 billion for diesel but ended up spending R6.206 billion, reflecting heavy emergency usage.

In 2020, the diesel budget was set at R1.078 billion, yet actual spending rose sharply to R8.63 billion, again highlighting the utility’s reliance on diesel generation.

The trend continued in 2021, when Eskom planned for R1.939 billion but ultimately spent more than R8.2 billion.

In 2022, diesel costs increased significantly, with a budget of R1.556 billion and actual expenditure reaching nearly R12.7 billion.

The following year, 2023, the company budgeted R14 billion, but diesel expenses surged to over R29 billion, underscoring persistent operational challenges and dependence on emergency generation.

For 2024, Eskom budgeted R27.9 billion and spent R33.357 billion — still over budget but demonstrating ongoing investment in grid stability.

Interestingly, in 2025, actual diesel spending dropped to R17 billion, well below the R21.8 billion budgeted, signaling improved cost control.

As of the 2026 financial year to date, Eskom’s diesel expenditure stands at about R6.7 billion against a budget of R8 billion, maintaining the positive trend of reduced reliance on diesel fuel.

This pattern suggests that Eskom is gradually curbing its dependence on diesel, despite periodic fluctuations driven by operational pressures — a shift that reflects both fiscal improvement and enhanced generation performance.