The Automobile Association (AA) has cautioned motorists to limit non-essential travel due to the spectre of fuel shortages caused by the riots.
It also warns of further fuel-price hikes in August. Based on unaudited mid-month fuel price data from the Central Energy Fund (CEF), the AA says petrol is set for an 87c/l hike, diesel 58c and illuminating paraffin 56c in the first week of August.
The petrol price reached a record high in July when 95 octane rose 26c/l and 93 octane 29c/l, while the wholesale price of diesel increased 41c for low-sulphur 50ppm and 42c for 500ppm.
“Fuel prices were already trending higher before the widespread looting and unrest of the past few days,” says the AA.
“But now, the daily rand-dollar exchange rate has spiked from R14.35 to nearly R14.80 since June 12. SA imports a lot of fuel, which will inevitably cost more in rand terms. Meanwhile, international oil prices remain on the advance, adding further pressure.”
The association says that fuel supply to many areas could be affected if the shutdown of Sapref, SA’s largest crude oil refinery, is protracted. The Durban-based refinery, which supplies a third of SA’s fuel, stopped operating on Tuesday due to the ongoing violence in KwaZulu-Natal.
There have been sporadic reports of petrol stations running out of fuel in Gauteng and KwaZulu-Natal, and Gauteng may face further shortages due to large sections of the N3 freeway, the main delivery route, being closed due to the violence.
The N3 between Cedara (just north of Pietermaritzburg) and Harrismith remained closed to all traffic, the N3 Toll Concession tweeted on Thursday morning.
Panic-buying of fuel ensued on Tuesday, with long queues reported at Durban petrol stations as several forecourts ran out of fuel while others were closed.
AA spokesperson Layton Beard called on motorists not to panic-buy fuel as there was still enough at the moment. He advised motorists to avoid unnecessary journeys and to buy no more fuel than necessary, to preserve current stocks for essential and emergency services.
The SA Petroleum Industry Association (Sapia) said the availability of fuel was stable at the moment.
Operations at some facilities in KwaZulu-Natal, Gauteng and Mpumalanga have been temporarily suspended until the situation improves, it said. A number of retail service-station sites had been damaged and set alight, resulting in some companies shutting down operations in Durban and parts of Soweto.
Sapia was concerned with the looting of fuel from retail service station sites and the filling of plastic containers with fuel on retail service station sites, which it said posed a serious safety risk.
“As this is a fluid situation, assessments and decisions are being made on an hourly basis. Sapia is actively engaging with the department of mineral resources and energy to ensure that adequate supply to the market is maintained,” said Sapia executive director Avhapfani Tshifularo.
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