The Fuels Industry Association of South Africa was established in 1994 under the auspices of former president Nelson Mandela to represent the collective interests of the South African liquid fuels industry and to usher South Africa’s vital liquid fuels industry into a new democratic era.
Seelan Naidoo, Chief Executive Officer of Engen Petroleum Limited is the Chairperson of the Fuels Industry Association of South Africa for the year 2024 – 2025.
He is the 26th industry leader to chair the association since its establishment in July 1994.
The Fuels Industry Association of South Africa opened its membership in 2012 to accommodate both existing and potential marketers in the petroleum and refinery market. Membership is available to companies participating in the refining and marketing of petroleum products.
The oil industry is divided into upstream and downstream activities. Upstream refers to the exploration and production of crude oil. Downstream refers to the refining, transportation and marketing of end-user products.
The petrol retail price is regulated by government and changed every month on the first Wednesday of the month.
Under the threat from international oil sanctions in the past, the liquid fuel industry was losing less governmental intervention and regulation.
The Fuels Industry Association of South Africa takes pride in proactively engaging with key stakeholders, providing research information, expert advice and communicating the industry’s views.
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Head Communication: Phila Mzamo
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Email: communication@fuelsindustry.org.za
Fuels Industry Association of South Africa Standardises Cylinder Deposit Fees to Streamline Industry Practices
Johannesburg, Thursday, 31 October 2024 – The Fuels Industry Association of South Africa is pleased to announce a significant step forward in the standardisation of cylinder deposit fees across the liquefied petroleum gas (LPG) sector. Following an approach to the Competition Commission, the Association has secured approval to implement uniform deposit fees for LPG cylinders, marking a milestone that will benefit both the industry and consumers.
South Africa’s LPG sector currently uses a hybrid cylinder model whereby in some instances, consumers purchase the cylinders themselves and refill them as needed through authorised refillers. In other cases, consumers pay a once-off deposit on a cylinder and then exchange the empty cylinder for a refilled one, paying only for the LPG. This exchange model can continue indefinitely, with the LPG wholesaler responsible for maintaining the cylinder’s integrity.
The LPG industry has long advocated for uniform and cost-reflective cylinder deposit fees to facilitate the exchange model, and this decision by the Competition Commission allows the industry to take a vital step forward. By using an independent third party to collate data on cylinder procurement costs, a fair deposit fee for each class of cylinder was determined and approved by the Competition Commission. This approach is expected to streamline the exchange process and establish a fair, more cost reflective deposit. It encourages investments in new cylinders by all marketers, supporting a more efficient cylinder exchange program that promotes investment and much needed industry growth.
The table below provides the deposit fees per class of cylinder, as approved by the Competition Commission:
| Cylinder Size | Deposit Fee (Rand per cylinder excluding VAT) |
| 5 kg | R 350.00 |
| 9 kg | R 450.00 |
| 14 kg | R 550.00 |
| 19 kg (normal) | R 600.00 |
| 19 kg (forklift) | R 700.00 |
| 48 kg (single valve) | R 1050.00 |
| 48 kg (double valve) | R 1050.00 |
“This landmark approval underscores the Association’s commitment to transparency and efficiency within the LPG sector, aligning with the Fuels Industry Association’s mission to foster a balanced and consumer-friendly marketplace,” said Avhapfani Tshifularo, the Executive Director of the Fuels Industry Association of South Africa.
“While the new standardised fees may result in increased deposit fees for new LPG consumers based on cylinder size, by introducing standardised deposit fees for each cylinder size category, we hope that this will reduce barriers to cylinder exchanges and ensure a more seamless experience for consumers across South Africa,” he concluded.
The Association encourages all stakeholders to prepare for a sector-wide adoption of the standardised deposit fees by 18 November 2024, as part of its ongoing commitment to optimising services and reinforcing industry growth.