• The availability of petroleum products is currently stable, according to the SA Petroleum Industry Association.
  • The body noted that some operations in KwaZulu-Natal, Gauteng and Mpumalanga have been temporarily suspended – for the safety of people and protection of assets.
  • The industry is assessing and making decisions hourly, and engaging with the Department of Mineral Resources and Energy to make sure adequate supply is maintained.

The availability of petroleum products is currently stable, and the industry is engaging with the Department of Mineral Resources and Energy (DMRE) to ensure adequate supply to the market is maintained, according to the SA Petroleum Industry Association (SAPIA).

SAPIA, which represents the interests of the petroleum industry, on Wednesday issued a statement on the impact of unrest on operations for the businesses it represents. Among its members include PetroSA, Engen Petroleum, Sasol Oil and BP Southern Africa, LPG wholesalers Easigas and Totalgaz, as well as fuel wholesalers Afric Oil and Puma Energy.

Parts of the country have been affected by riots in KwaZulu-Natal and Gauteng following the incarceration of former president Jacob Zuma last week. A number of businesses have suffered property damage and looting. There have also been road blockages, affecting the movement of freight in and out of KwaZulu-Natal.

Reuters earlier reported that the Durban and Richards Bay ports have been disrupted. According to an update from state rail, ports and freight company Transnet, the entire supply chain has been closed – including the roads leading into and out of the ports and some staff members have been unable to access operations due to road closures and unavailability of public transport.

Avhapfani Tshifularo, executive director of SAPIA said that an impact assessment of the unrest across KwaZulu-Natal, Gauteng and parts of Mpumalanga was conducted. “The South African Petroleum Industry Association can confirm that the availability of petroleum products is currently stable,” said Tshifularo.

Tshifularo noted that operations at some facilities in the affected provinces have been temporarily suspended until the situation improves. “A number of retail service station sites have been reported to be damaged and set alight. As a result, some companies have decided to shut down operations in Durban and parts of Soweto for the safety of people and the protection of assets,” said Tshifularo.

SAPIA raised concerns of the looting of fuel from retail service station sites, as well as the filling of plastic containers with fuel. These activities pose a serious safety risk, said Tshifularo.

“As this is a fluid situation, assessments and decisions are being made on an hourly basis. SAPIA is actively engaging with the DMRE to ensure that adequate supply to the market is maintained.”

Earlier, gas provider Afrox told Fin24 that it has implemented a force majeure due to the civil unrest. The force majeure affects deliveries of hard goods, LPG, and atmospheric gases in KwaZulu-Natal and other parts of South Africa. Afrox is South Africa’s largest provider of medical gases to the healthcare sector.

On Tuesday Shell and BP South African Petroleum Refineries (Sapref), said that it would implement a force majeure due to the unrest. Sapref is responsible for 35% of South Africa’s refinery capacity.

Transnet noted Sapref’s force majeure, as well as that of the Natcor railway line linking Durban and Gauteng. Transnet said it would be deploying all its own available resources to “avert commercial operations being affected” by an escalation of force majeure notices across the “essential” supply chain.

SOURCE:
https://www.news24.com/fin24/economy/fuel-supplies-stable-situation-assessed-hourly-industry-body-20210714