Despite the ongoing conflict in the Middle East, there is currently no risk of fuel shortages in South Africa.
This is according to the Department of Mineral and Petroleum Resources (DMPR), which remains in continuous contact with oil companies to ensure the stability and security of local fuel supply.
The department issued a statement following reports from petrol station owners that fuel supplies may be limited in the wake of the conflict in Iran.
The DMPR assured motorists that it is also closely monitoring developments in the Middle East and their potential impact on global oil markets and, in turn, fuel prices.
“While prolonged geopolitical tensions may exert pressure on international oil prices, the Department wishes to assure the public that there is currently no immediate risk of fuel shortages in South Africa,” it stated.
The department noted that despite the closure of several refineries in recent years, South Africa still has two operational oil refineries – NATREF and Astron Energy.
Additionally, the Sasol Secunda coal-to-liquids plant plays a critical role in domestic fuel production.
These facilities are not dependent on crude imports from the Middle East, sourcing instead from West Africa and increasingly from other African countries.
Astron Energy’s refinery is currently shut down for maintenance, but has secured sufficient fuel imports to cover supply requirements during its maintenance period.
It must be noted that local refineries can process only about 250,000 barrels of oil per day, which is less than half of South Africa’s daily average usage.
Oil companies that rely on imported refined petroleum products from Middle Eastern countries caught in the conflict are actively exploring alternative supply sources to ensure uninterrupted local fuel availability.
The department noted that it remains optimistic that the ongoing tensions will de-escalate in the near future, which would help to stabilise the global oil markets and improve fuel price conditions.
Rising international crude prices are expected to result in higher fuel prices at the pump from next month.
Bad news for April fuel prices
The average basic fuel prices for both petrol and diesel have been fluctuating since the start of the conflict, mostly under-recovering, leading to increased prices.
International crude oil prices also rose significantly, spiking from around $70 per barrel in late February to over $90 last week. Prices have since stabilised slightly, dipping below $90 at the time of writing.
The US dollar, used in international trade and fuel and oil purchasing transactions, has also strengthened since the start of the Middle East conflict, affecting domestic fuel price projections.
The latest data from the Central Energy Fund (CEF), which keeps track of fluctuations in daily average fuel prices, points towards massive increases in the prices of both petrol and diesel in April.
Under-recovery numbers on 9 March point towards an increase of more than R3 per litre for petrol, and nearly R6 per litre for diesel.
Current unaudited projections from the CEF are as follows:
- Petrol 93 – Increase of R3.12 per litre
- Petrol 95 – Increase of R3.35 per litre
- Diesel 0.05% – Increase R5.66 per litre
- Diesel 0.005% – Increase of R5.78 per litre
Note that this is likely to change over the coming weeks, and further updates are expected from the Department of Mineral and Petroleum Resources ahead of the official April fuel price adjustments.
Loading ...
