Diesel and 95-octane petrol users will feel the pinch when new fuel specifications come into operation next year, eliminating leaded petrol from the market.
Diesel users will fork out more for a new, low sulphur version of the fuel, while motorists insisting on using 95-octane petrol rather than 93- or 91-octane will pay a special levy, the Department of Minerals and Energy said on Thursday.
Cleaner fuel specifications, effective from January 1, will remove all leaded petrol from the South African market.
This is in terms of a Cabinet decision made earlier this month, confirming its approval in 2002 of a recommendation to discontinue leaded petrol by 2006, Deputy Director General of Minerals and Energy Rod Crompton said in Pretoria.
From January 1, diesel with 3 000 sulphur parts per million will be replaced by a new diesel containing only 500 parts per million.
The new type is more expensive, said South African Petroleum Industry Association director Colin McClelland. The difference in price is currently about 15 to 20 cents per litre, and varies depending on international price factors.
As for petrol, motorists can from next year choose between 91-, 93- and 95-octane unleaded petrol.
A 95-octane lead replacement petrol (LRP) will also be available for older cars inland, and a 93-octane LRP at the coast. LRP uses octane-boosting additives, typically heavy-metal-based, rather than lead.
Crompton said a special 10 cents per litre will be levied on 95-octane petrol from the beginning of next year, to discourage its use.
The levy can be increased to as much as 50 cents per litre depending on demand, and will be reviewed periodically.
South African producers will not be able to meet demand if every motorist were to decide to use 95 octane from January 1, but most refineries have started upgrading projects.
Crompton sought to dispel a widespread belief that petrol of a higher octane improves a car’s performance.
”A significant proportion of motorists think octane is the solution to all their problems as far as speed and power is concerned, which of course it isn’t,” he said.
The specifications will bring no change to petrol prices, as existing pricing regulations will remain, Crompton said.
Consumers wishing to switch to a higher octane of petrol will pay more, as the prices vary for different octane grades.
Cost to the industry
McClelland said the cost of the changes to the petroleum industry has been estimated at between R6-billion and R8-billion at the current rand/dollar exchange rate.
Some of this will be recouped from the higher income from diesel.
Crompton stressed that there are benefits to using the new, costlier diesel. Using a ”cleaner” diesel will extend vehicles’ service intervals.
The introduction of lead-free petrol and low-sulphur diesel is in the interests of better health, a cleaner environment and in line with international trends, said the department’s chief director of hydrocarbons, Nhlanhla Gumede.
It has been found that South African children living next to refineries or highways have levels of lead in their bodies 10 times higher than those allowed by World Health Organisation guidelines. Lead is toxic to the brain, kidneys, and reproductive and cardiovascular systems.
Gumede said it does not make economic sense to produce different types of engines for the South African and export car markets.
Lead increases the octane rating of petrol and was perceived to act as a cushion between the valve and cylinder heads of older cars. To this end, anti-valve seat recession additives will be available at petrol stations.
All cars manufactured since 1996 can run on unleaded petrol — which currently accounts for about 30% of the fuel market.
There are currently three different octanes of petrol on the market — 93-octane leaded and unleaded inland, and 95-octane unleaded and 97-octane leaded at the coast.
Crompton said a database is being developed to inform motorists of the octane grade recommended for their vehicles, and whether they should use LRP.
Regulations to give effect to the specifications are expected to be published by mid-year. — Sapa