Our focus: Facilitate the security of supply of petroleum products
Security of supply underpins the work of the Fuels Industry Association of South Africa. It focuses on maintaining a resilient and reliable liquid fuels network through coordinated supply planning, demand management, and emergency response capability.
To support this role, the Competition Commission granted an exemption to the Association and its members, allowing structured industry coordination in the national interest. This enables proactive logistics planning, reduces the risk of supply disruptions, and strengthens South Africa’s fuel security.
Long-term security of supply depends on sustained investment in infrastructure, including refinery reconfiguration to produce Clean Fuels II–compliant products that meet modern emissions standards and support global competitiveness.
Priority Areas
National Infrastructure Risk Assessment
To deliver on the security of supply mandate, the Association undertook a comprehensive national infrastructure risk assessment covering the full liquid fuels value chain: ports, pipelines, rail, storage, refining, and inland distribution.
This assessment underpins the National Integrated Liquid Fuels Supply Chain Infrastructure Masterplan, co-developed with the Department of Mineral and Petroleum Resources, and provides a practical framework for prioritising investment and policy action.
The assessment supports security of supply through the following pillars:
Integrated National Partnership
The Masterplan is developed in partnership with the Department of Mineral and Petroleum Resources, with participation from government departments, regulators, state-owned entities, and industry stakeholders.
Evidence-Based Infrastructure Prioritisation
Identified risks guide targeted investment across ports, pipelines, rail, inland logistics, and critical jet fuel infrastructure at Cape Town and OR Tambo International Airports.
Coordinated Governance
A multi-stakeholder governance framework aligns policy, regulation, operations, and infrastructure planning.
Removal of Systemic Bottlenecks
Key constraints are addressed, including Customs and Excise licensing, terminal lease tenure, and clearance and permitting processes.
Modernised Pricing and Regulation
The Association works with government to modernise the Basic Fuel Price, LPG pricing frameworks, and pipeline and storage tariffs.
Focused Implementation
The Masterplan is implemented through five work streams:
Infrastructure and Operations; Customs and Licensing; Industry Coordination; Regulatory and Pricing Reform; and Lease Tenure and Investment Enablement.
24 inch multi-product pipeline
The 24 inch diameter multi-product pipeline (MPP) constructed by Transnet Pipelines became operational in January 2012, with the commissioning of the 555 kilometre trunk line between Durban and Jameson Park. There are three pump stations, situated at Tweni, in Durban; at Hilltop, near Pietermartizburg and at Mnambithi, near Ladysmith. Currently the pipeline only conveys diesel but once the project is fully completed it will transport petrol, diesel and jet fuel. Movements in the rand-based elements (internal factors) are subject to government control. They comprise adjustments in taxes and levies, transport costs, wholesale margins, retail margins and service costs. The overriding rationale of the control of prices and margins should be to ensure that the various stakeholders in the industry earn fair returns. The returns should be sufficient to encourage the needed investment in the industry, while not being such as to represent over-reward.
Fast Facts About the Multi-Product Pipeline:
- The 555km, 24 inch pipeline runs between Durban and Jameson Park, south of Johannesburg.
- It will replace the 12 inch Durban to Johannesburg Pipeline which was built in 1965.
- It has a price tag of R23.4 billion.
- Refined fuel products will be transported at a rate of about three million litres an hour.
- Capacity of the line will be 26.7 billion litres of fuel a year.
- It is expected to be active for the next 80 years.
National Strategic Fuel Stocks Policy
The Draft Strategic Stocks Petroleum Policy and Draft Strategic Stocks Implementation Plan were published by the DOE for public comment in 2013. Both the policy and plan are published in terms of section 17 of the National Energy Act of 2008. The policy sets out the framework for the storage of fuel stocks by both government and oil companies. It aims to ensure uninterrupted supply of petroleum products throughout South Africa by providing adequate strategic stocks and infrastructure such as storage facilities and pipeline capacity. Strategic stocks are to be used during declared emergencies and the Minister of Energy has the power to decide when a shortage of fuel and oil is at such a level to warrant an emergency.
20-year liquid fuels infrastructure roadmap project
The Department of Energy is developing the 20-year liquid fuels infrastructure roadmap to ensure continued security of supply of liquid fuels to enable South Africa’s growth and development. The roadmap will also assist in determining the capabilities and capacity for local refining, storage, handling and logistics. The Fuels Industry Association of South Africa commented on the draft strategic stocks petroleum policy and draft strategic stocks implementation plan. A stakeholders’ consultation workshop was held to discuss comments on the draft strategic stocks petroleum policy and draft strategic stocks implementation plan. The Fuels Industry Association of South Africa is awaiting the finalisation of the policy by government. Refinery performance audit project The refinery performance audit project is a small part of the 20-year liquid fuels infrastructure roadmap project. The audit seeks to establish the existing refineries reliability, availability and capacities. The audit of the refineries was completed by the DOE and indicated the need for increased investment in the refineries. The facts gained from the audit will serve to inform the Liquid Fuels Infrastructure Roadmap. Member companies have submitted their feedback regarding the refinery performance project to the DOE.
Feedstock and Products Import Facilities Risk Mitigation Plan
The Fuels Industry Association of South Africa has identified the following risks to the fuel supply chain:
- Single buoy mooring (SBM) and related infrastructure outage
- Cape Town berth and pipeline constraints impacting on security of supply
- Avtur pipeline/Natref shutdown could lead to an OR Tambo International Airport jet fuel supply risk
- Refinery outage (more than one refinery outage at the same time)
- Limited/poor imports infrastructure in Cape Town and Durban (gas risk)
