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
5 July 2022, Johannesburg – The South African Petroleum Industry Association (SAPIA) responds to the proposed Fuel Price Deregulation Bill submitted to Parliament.
Says Avhapfani Tshifularo, Executive Director of SAPIA, “Markets worldwide are experiencing unprecedented high fuel prices brought by the opening up of economies after the pandemic and exacerbated by invasion by Russia into Ukraine. The local fuel price consists of both internal and external factors, the latter of which are linked to the international markets. These constantly move and account for most of the monthly movements in prices and are outside the control of the industry.”
The Monthly Pricing System, whereby the controlled prices are changed on the first Wednesday of each month, takes account of movements in these external factors. When the various internal factors are adjusted – usually once a year – these movements are also included in the relevant monthly price changes. In a particular region, countries would see similar landed costs for petroleum products with final pump price differences between these countries largely as a result of different taxes.
“In South Africa, the internal rand-based factors which are in the control of government, remain fixed for a 12-month period. This means that the monthly fuel prices adjustments are a direct result of the external factors which is impacted by the international markets”, says Tshifularo.
While the current system to determine fuel price adjustments is not flawless, it is a fair and transparent process, documented, subject to constant review and auditable. Any changes to the present regulatory system should be conducted in a spirit of transparency and on condition that relevant consultations with industry is observed, taking into account the interests of all role players.