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Government bans container sales to combat fuel hoarding

Department issues regulations against retailers filling jerry cans with petrol and diesel

We cannot allow such companies to begin operations, because once they do, they destroy the land, they destroy the water, they destroy us, says the writer. Picture: SIPHIWE SIBEKO
We cannot allow such companies to begin operations, because once they do, they destroy the land, they destroy the water, they destroy us, says the writer. Picture: SIPHIWE SIBEKO

The government’s ban on the sale and dispensing of petrol and diesel in containers to thwart arson and fuel hoarding has caused concern in the agricultural industry. 

Regulations to prohibit the retail sale of petroleum products to the public in portable containers were issued on Thursday by the department of mineral resources & energy “in the interests of public safety associated with the ongoing unrest”.

The regulation will prevent hoarding of fuel as businesses and motorists are concerned about fuel shortages with the continued closure of the SA Petroleum Refineries (Sapref) which on Tuesday said it could not operate without the supply of critical materials. It may also assist in thwarting acts of arson which characterised much of the unrest in Gauteng and KwaZulu-Natal this week.

The DA’s Kevin Mileham said the prohibition was of concern as it would have a profound impact on residents using generators, certain power tools and the agricultural sector more broadly.

Agricultural organisation TLU SA said the decision was short-sighted and impractical as it affects farmers who rely on fuel to run tractors, generators and pumps.

Moreover, it was fire season in many parts of SA, and diesel and petrol were used in firefighting equipment.

“TLU SA suggests that farmers be allowed to use their permits to deliver essential services during alert level 4 of the lockdown to buy fuel in portable containers.”

In a statement, the department discouraged panic-buying. “While there are challenges with regards to the movement of petroleum products to some parts of the country, there is sufficient product and government is working to secure the movement of all petroleum products,” it said.

Led by minerals and energy minister Gwede Mantashe, the department is engaging with participants in the energy and mining sector.

The petroleum sector, led by the SA Petroleum Industry Association (Sapia), said the disruptions in KwaZulu-Natal and the closure of Sapref will have a ripple effect across the national supply chain for petroleum products. Sapia said it was committed to monitor the status of the fuel supply chain and advise the department of steps taken.

Mileham said it should come as no surprise that SA has no refined fuel reserves. The DA had raised the matter with minister Mantashe on several occasions but been rebuffed.

“The recommendations of the Moerane Commission in this regard, which were incorporated into a Draft Strategic Fuel Stocks Policy in 2013, have been ignored, and as a result we now have imminent fuel shortages.”

Mileham said Mantashe would do better to rapidly restore SA’s refining capacity by returning Sapref to production and also potentially the Astron refinery.  The Engen and Astron refineries have remained closed since last year after each suffered an explosion.

Additionally, he said, it is vital to secure the distribution network for fuel. This includes the Transnet Multi Product Pipelines which distribute fuel from KwaZulu-Natal to various inland provinces.

“The last leg of distribution, via tankers to individual petrol stations, is equally critical and the security of the tankers and the safety of the staff operating them is paramount.”

Mileham urged that Mantashe secure SA’s fuel supply and ensure an equitable distribution to all who need it.

steynl@businesslive.co.za

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