‘No imminent shortage of fuel,’ department says after claim of scarcity

The department of mineral resources and energy has dismissed claims by the fuel wholesale industry that there is a fuel shortage.

Liquid Fuels Wholesalers Association (LFWA) CEO Peter Morgan said at the weekend that SA was heading towards potential “fuel-shedding” due to a lack of strategic fuel reserves and refineries.

"[The department] notes public comments made by the Liquid Fuel Wholesalers Association about the imminent shortage of liquid fuel,” the department said.

“The department assures South Africans there is no imminent shortage of liquid fuels, and predictions by the Liquid Fuel Wholesalers' Association are unfortunate. The supply chain of the petroleum sector in SA is resilient even as the disruptive geopolitical war in Eastern Europe rages on. The department engages the industry on a weekly basis on supply issues and will seek clarity from the LFWA on its comments.”

According to Morgan, the shortage of refineries means the country is increasingly reliant on imports, and supply chain disruptions are a risk as highlighted by the Transnet strike that affected operations at Durban port.

“Over a number of years the government deliberately enabled investment in fuel import terminals when the reliability of existing petroleum refineries was in question. These import terminals provided the backup to existing refineries and this has proven to have been a correct strategy as refineries close,” the department said.

“The import terminals throughout the country’s ports are able to ensure the security of fuel supply. In addition, major investments have been made by Mozambique and Namibia, which further strengthen the region’s fuel supply position.”

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