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, 24 October 2024 – The Fuels Industry Association of South Africa is raising the alarm on the persistent issue of diesel adulteration with illuminating paraffin (IP), a practice that escalated rapidly since 2019. This illegal activity has not only resulted in significant financial losses to the fiscus, estimated now at more R3 billion annually, but has also caused equipment failures and market distortions.
In response to this ongoing problem, the Association has put forward a comprehensive proposal to tax marked illuminating paraffin at the same level as diesel. By applying the full duties and levies applicable to diesel we believe this measure will eliminate the economic incentive for unscrupulous operators to continue this practice. This approach has the potential to bring the illegal adulteration of diesel to a halt.
Our proposal also includes provisions to mitigate the impact on indigent households who rely on paraffin for heating and cooking by recycling the revenue from this taxation back to these households through the South African Social Security Agency grant system. This ensures that the most vulnerable members of our society are not adversely affected by the increased cost of paraffin.
We are urging the Minister of Finance to seriously consider our proposal. Implementing this taxation policy has the potential to recover billions of rands for the fiscus, funds that are currently being lost due to the illegal blending of IP into diesel. This recovered revenue can be used to support essential public services and infrastructure projects.
The Association believes that this approach will not only curb the illegal adulteration of diesel but also ensure that the state recovers the duties and levies rightly due. It is a practical and effective solution that addresses both the economic and social dimensions of this issue. We call on all stakeholders, including policymakers, industry players, and the public, to support this initiative. Together, we can put an end to this illegal practice and ensure a fair and equitable market for all.