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.
For Media queries, please contact
Head Communication: Phila Mzamo
Mobile: 066 423 2319
Email: communication@fuelsindustry.org.za
press release
Johannesburg, Thursday, 10 October 2024 – The supply of aviation kerosene is facing a severe threat due to regulatory delays in the licensing of import storage facilities. Without immediate intervention, a fuel shortage could disrupt operations at O.R. Tambo International Airport and other airports, which include King Shaka International
Airport.
The industry’s concerns arise from the fact that under the Customs and Excise Act, 91 of 1964 (the Act), the import of aviation kerosene into dedicated storage facilities is subject to stringent licensing conditions. Following the termination of operations at Durban refineries, the South African Revenue Service (SARS) insisted during 2023 that affected parties should license their facilities in terms of the Act. In the interim, SARS granted temporary, time bound licensing for the importation of aviation kerosene. The affected parties set about applying for the permanent licensing of their facilities which was completed in February of this year. Another time-bound licensing arrangement had to be provided, set to expire later in October. However, more than six months later, SARS has yet to finalize the permanent licensing of these facilities, despite previously indicating that the process could be completed in a much shorter time frame.
Without immediate action to either extend the temporary arrangements or issue permanent licenses, South Africarisks a severe aviation kerosene supply shortage to O.R. Tambo and King Shaka International Airports and other airports directly supplied from Durban. Local companies cannot be expected to import without regulatory approval and the regulatory uncertainty places the planning and the economic supply of aviation kerosene under pressure. This also has ramifications for the airline industry, who will take steps to avoid potential stock outs by cancelling scheduled flights, inconveniencing passengers and causing serious doubt about the local reliability of airline traffic due to the unreliability of aviation kerosene supply.
The industry’s stance is clear, the Act must be urgently revised to align with modern industry practice, taking into account the requirements to protect the fiscus and the significant changes that have happened in the industry over the past few years. Current regulatory constraints, as a consequence of the Act, make it increasingly difficult to sustain local business or allow new entrants into the market. The Fuels Industry Association of South Africa urgently calls on the Minister of Finance to instruct SARS to extend temporary licenses for at least 12 months or until the necessary permanent licensing is finalised to avert a supply crisis.