Refineries bogged down by demand

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GK CRONJE

16 June 2020

Although production had ramped up at the refineries, and product imports had arrived in South African ports, the challenges remain. Neither Mantashe, nor parliament's portfolio committee on mineral resources and energy chairperson, Sahlulele Luzipo, had responded to the DA's request for an urgent briefing on what was being done to mitigate this crisis.

Suzuki Ermelo (WEB) 22 September 2020.jp

The DA remains extremely concerned at the lack of response from mineral resources and energy minister, Gwede Mantashe, regarding the ongoing diesel shortages being experienced around South Africa. Numerous wholesalers and retailers experiences difficulty in obtaining resupply. Although production had ramped up at the refineries, and product imports had arrived in South African ports, the challenges remain. Neither Mantashe, nor parliament's portfolio committee on mineral resources and energy chairperson, Sahlulele Luzipo, had responded to the DA's request for an urgent briefing on what was being done to mitigate this crisis. Deputy director-general for petroleum and petroleum products regulation, Tseliso Maqubela, had confirmed that diesel was currently being rationed.

“Minimal refining capacity is online, and there is very limited imported stock arriving on our shores. According to reports, three of South Africa’s six refineries are yet to restart operations, two are in limited production, and the PetroSA facility had halted production temporarily due to product contamination and pipeline failures. This means that diesel is likely to be rationed for the foreseeable future. Given the lengthy lead time to procure, ship, offload and distribute fuel stock, it makes sense to hold sufficient reserves in the country to offset any potential supply chain interruptions.”

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