DMRE denies SA faces imminent fuel shortages
Supply is resilient
The import terminals throughout the country's ports are able to ensure security of fuel supply.
The Department of Mineral Resources and Energy (DMRE) has insisted there is no imminent shortage of liquid fuel in the country.
A statement from the department was published in response to comments made by the Liquid Fuel Wholesale Association, as published by Independent Media's Business Report and other, that warned fuel-shedding could become a reality if strategic stocks are not built up in South Africa as was recommended by a 2006 commission of inquiry report. The Business Report article said the department had not responded to repeated requests for comment.
"The DMRE would like to assure South Africans that there is no imminent shortage of liquid fuels in the country, and predictions made by the Liquid Fuel Wholesalers Association (LFWA) are very unfortunate," the department said in Tuesday's statement, adding that the supply chain of the petroleum sector in South Africa is resilient even as the disruptive geopolitical war in eastern Europe rages on.
"Over a number of years, the government deliberately enabled investment in fuel import terminals when the reliability of existing petroleum refineries was in question," the department said.
"These import terminals provided the backup to existing refineries and this has proven to have been a correct strategy as refineries close. The import terminals throughout the country’s ports are able to ensure security of fuel supply."
In addition, the department said major investments have been made by both Mozambique and Namibia which further strengthen the region’s fuel supply position.
As recently reported by News24, the South African Petroleum Industry Association (Sapia) has however warned that concern is growing over the risk to the country's security of fuel supply as import infrastructure would be unable to cope with rising fuel imports should another refinery close. Incentivising industry to build more storage would mitigate these risks, the association said.
The department said it engages the industry on a weekly basis on supply issues and will seek clarity from the LFWA on its comments.-Fin24
A statement from the department was published in response to comments made by the Liquid Fuel Wholesale Association, as published by Independent Media's Business Report and other, that warned fuel-shedding could become a reality if strategic stocks are not built up in South Africa as was recommended by a 2006 commission of inquiry report. The Business Report article said the department had not responded to repeated requests for comment.
"The DMRE would like to assure South Africans that there is no imminent shortage of liquid fuels in the country, and predictions made by the Liquid Fuel Wholesalers Association (LFWA) are very unfortunate," the department said in Tuesday's statement, adding that the supply chain of the petroleum sector in South Africa is resilient even as the disruptive geopolitical war in eastern Europe rages on.
"Over a number of years, the government deliberately enabled investment in fuel import terminals when the reliability of existing petroleum refineries was in question," the department said.
"These import terminals provided the backup to existing refineries and this has proven to have been a correct strategy as refineries close. The import terminals throughout the country’s ports are able to ensure security of fuel supply."
In addition, the department said major investments have been made by both Mozambique and Namibia which further strengthen the region’s fuel supply position.
As recently reported by News24, the South African Petroleum Industry Association (Sapia) has however warned that concern is growing over the risk to the country's security of fuel supply as import infrastructure would be unable to cope with rising fuel imports should another refinery close. Incentivising industry to build more storage would mitigate these risks, the association said.
The department said it engages the industry on a weekly basis on supply issues and will seek clarity from the LFWA on its comments.-Fin24
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