The team that investigated last December’s fuel shortages has urged that immediate steps be taken to prevent another supply crisis towards the end of this year.
This emerged after Minister of Minerals and Energy Buyelwa Sonjica met the governors of the South African Petroleum Industry Association (Sapia) on Thursday.
The meeting discussed the report of the Moerane investigating team on last year’s fuel shortages during the busy holiday and Christmas deliveries period.
”The meeting then focused its attention on the anticipation by the investigating team that another supply crisis could emerge in the second half of 2006 as a result of scheduled refinery maintenance work due to be done during that time,” a joint statement said.
The investigating team advised: ”It is imperative that a plan be put in place with immediate effect to avoid this [another shortage] happening.”
Sapia chairperson Rams Ramashia said a number of steps have been taken to avoid the ”convergence of so many adverse factors” that contributed to the earlier shortages.
”Some, such as clean-fuels changes, were in fact one-off events,” said Ramashia, referring to the legally required move to lead-free fuel. The move required making adjustments at refinery and pump level, and the phasing in of new fuels.
The department will chair a logistics planning team that will meet regularly to monitor the supply situation throughout the country and ensure that adequate stocks are being sourced to cover periods of refinery maintenance.
The industry’s stock levels are at present at full tank levels throughout the country.
Some of the measures taken to deal with fuel issues include speeding up the expansion of the coast-to-Gauteng products pipeline, setting up a team to study and make recommendations on the long-term supply and demand situation in the country, conducting a review of the regulatory system, re-evaluating strategic and commercial stocks policies, and importing liquid petroleum gas to cover shortfalls.
Sonjica said: ”We must ensure that South Africa has the fuel it needs to meet its growth targets. A reliable fuel supply is key to the achievement of our target of 6% [a year] growth by 2010.”
A further meeting is planned for early October with Sapia governors to discuss the team’s recommendations in more detail.
”I intend to ensure that a partnership is built between the industry and my department that will result in the relationships that are needed to ensure that the events of December 2005 do not recur. We owe this to the people of South Africa,” she said.
Sapia does not expect any shortages of petrol, diesel or jet fuel this year, the association’s director, Collin McClelland said. It does not expect to have shortfalls of petrol, diesel, or jet fuel.
McClelland acknowledged that there have been shortages of liquid petroleum gas over the past three months but believes the shortage is over.
Liquid petroleum gas comes in cylinders and is used for cooking, specialised industrial heating and camping, and use goes up in winter. He said that unless there is an unexpected event, there should be no other fuel shortages. — Sapa