The Fuels Industry Association of South Africa contributes to policy development, policy implementation, and the advancement of a fair, transparent and effective regulatory framework for the liquid fuels industry.
South Africa's liquid fuels industry is highly regulated. Current licensing requirements and regulations govern, among other things:
- Importation and exportation of crude oil
- Importation and exportation of petroleum products
- Importation and exportation of blending components
- Operation of petroleum pipelines, including setting of tariff structures
- Operation of storage facilities and loading facilities, including approval of tariff structures
- Manufacturing of petroleum products
- Wholesale of fuels
- Retailing of fuels, including the pump price of petrol by grade and location
- Recovery of transport costs
- Liquefied petroleum gas refinery gate price
- Retail price for illuminating paraffin
- Retail and wholesale margins
- Petroleum products specifications and standards
Priority Areas
Clean Fuels II (CF2)
South Africa is preparing for the implementation of Clean Fuels II (CF2), which will introduce ultra-low sulphur fuels and enhanced fuel quality standards from 1 July 2027. This transition supports the country's decarbonisation objectives, improves air quality and enables the adoption of cleaner vehicle technologies.
As fuel prices are regulated, the costs associated with the transition to cleaner fuels must be transparent, verifiable and appropriately reflected within the regulated pricing framework. The Association supports:
With fuel prices regulated, clean fuel costs must be visible, verified, and fairly reflected, supported by:
- Robust cost monitoring
- Transparent fuel price reporting
- Public awareness of the health, environmental and emissions-reduction benefits of cleaner fuels
Customs and Excise
As South Africa increasingly transitions to becoming a net importer of petroleum products, fuel importers face growing challenges in meeting supply obligations under the current customs and excise regulatory framework.
The Fuels Industry Association of South Africa advocates for a modern, practical and efficient legislative framework through ongoing engagement with the South African Revenue Service (SARS). Our objective is to support a regulatory environment that facilitates the safe, compliant and efficient movement and storage of petroleum products while reflecting modern supply chain practices.
Diesel Adulteration
Addressing diesel adulteration remains one of the Association’s key regulatory priorities. Diesel adulteration, which involves the illegal blending of diesel with paraffin or other untaxed substances, has significant economic, operational and safety implications.
Key concerns include:
- Loss of government revenue: The illegal blending of diesel with untaxed illuminating paraffin has increased significantly since 2019, resulting in estimated annual revenue losses of approximately R4.2 billion in 2023.
- Market distortion: Diesel adulteration creates an uneven competitive environment and disadvantages legitimate industry participants.
- Equipment damage and safety risks: The use of adulterated diesel can damage engines, increase maintenance costs and compromise vehicle performance and safety.
- Policy intervention: Effective regulatory measures are required to eliminate incentives for diesel adulteration, strengthen enforcement and recover lost tax revenue.
The Regulatory Accounting System (RAS)
The Regulatory Accounting System (RAS) is a key regulatory tool used by the Department of Mineral and Petroleum Resources (DMPR) to determine fair and sustainable regulated petrol prices.
RAS provides a standardised and transparent accounting framework through which regulated costs are allocated according to predetermined methodologies, while allowing investors to earn an appropriate return on regulated assets.
The system covers all activities beyond the refinery gate, including:
- Secondary storage;
- Secondary distribution;
- Wholesale operations; and
- Service station retail operations.
The Association works closely with the DMPR to review and enhance the RAS methodology, ensuring that it remains accurate, transparent and responsive to changing market conditions.
A strengthened RAS enables the Department to determine petrol prices that appropriately balance industry sustainability with consumer protection.
Our contribution supports a pricing framework that is:
- Accurate – Reflecting actual costs and prevailing market conditions;
- Transparent – Applying clear and verifiable pricing methodologies;
- Responsive – Adapting to changes in costs, supply dynamics and government policy; and
- Balanced – Supporting a sustainable petroleum industry while protecting consumers from excessive costs.
Through this work, RAS continues to serve as a critical mechanism for fair, transparent and effective fuel price regulation.
Liquefied Petroleum Gas
We support the development of a transparent and effective price regulation framework for Liquefied Petroleum Gas (LPG), ensuring that pricing is fair, accountable, and consistent across the industry. A robust regulatory framework helps protect consumers, maintain industry sustainability, and foster confidence in the LPG market.
We further focus on strengthening industry compliance and reducing illegal cylinder filling activities. By addressing these challenges, we help create a safer, more reliable LPG supply chain, ensuring that LPG reaches consumers in a lawful and efficient manner.
Key Objectives:
- Transparent pricing: Establish clear and verifiable methods for determining LPG prices.
- Market compliance: Encourage adherence to regulations and reduce illegal practices.
- Industry development: Promote a stable and sustainable LPG market that attracts investment and supports growth.
Through these initiatives, we contribute to a regulated, trustworthy, and sustainable LPG market, strengthening public confidence and supporting the long-term development of the energy sector.
