By: Natasha Archary
Concerns mount over the looming South African fuel shortage which is exacerbated by the 11-day Transnet strike.
The country’s fuel stocks have hit an all-time low after the largest fuel producer, Sasol, declared a Force Majeure in July.
This meant SA had to triple its monthly petroleum imports as the country’s refineries were unable to produce petroleum products.
While Sasol said the outage was temporary, the situation has worsened by the Transnet strike, which cost the country almost R65 billion.
Listen to analysis on Kaya Biz on what this means for South Africans here:
The last time South Africa suffered from a fuel shortage was 17-years ago, and just last month Cape Town International Airport was at risk of running out of fuel.
Eskom’s additional diesel consumption during the country’s worst spell of rolling blackouts, poses a very real concern of a fuel shortage in the coming weeks.
Minister of Mineral Resources and Energy, Gwede Mantashe has not responded to the fuel shortage, but in April the Minister said there were 10 million barrels of crude oil stocks.
However, the DA says the ANC is to blame for the pending fuel shortage due to a lack of strategic implementation.
The DA is now seeking answers from government over how bad the fuel crisis really is, saying “fuel shedding” could threaten the social order yet again, resulting in yet another looting spree and further unrest.
“Since 2005, the ANC government has failed to implement the strategic refined fuel reserves recommendation, placing the country at severe risk of fuel shortages should there be a major disruption in the fuel supply chain.
Fuel industry bosses are now warning that South Africa ‘is perilously close to a major fuel supply crisis’ – due to the unavailability of refined fuel stocks. Any disruptions to the supply of refined liquid fuel will have far reaching consequences to the economy and social order.
The immediate impact will be the upending of supply chains, which will severely constrain productivity in the economy. Consumers could potentially face a food supply crisis as food wholesalers and distributors straggle to transport food stocks where they are needed.”
The DA on the mounting concern over a fuel shortage in SA
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