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Sars allows kerosene imports to avert airport fuel shortage

The special permission allows for kerosene fuel to be imported from October 21 2024 to October 20 2025

Sars commissioner Edward Kieswetter. File photo: SUPPLIED
Sars commissioner Edward Kieswetter. File photo: SUPPLIED

Sars commissioner Edward Kieswetter has granted special permission for kerosene fuel to be imported over the next year. 

Sars said that the special permission, from October 21 2024 until October 20 2025, was granted to allow parties to attend to the complexities involved in the process of the deregistration of manufacturing warehouses, and reregistration of affected storage facilities.

This announcement comes in the wake of concerns raised by Airports Company SA (Acsa) and the Fuels Industry Association of SA, warning of a jet fuel shortage ahead of the busy peak festive season that could hamper SA’s busiest airports, including King Shaka International and OR Tambo International. 

Earlier this week, industry players said to prevent a kerosene shortage crisis as temporary licence expiration dates approach, the industry organisation urged Sars and the finance minister to expedite the issuing of aviation kerosene import storage facility permits, or to extend temporary ones.

The Fuels Industry Association of SA called on the minister of finance to instruct Sars to extend temporary licences for at least 12 months or until the necessary permanent licensing was finalised to avert a supply crisis.

On Tuesday, Sars urged all parties to conclude all outstanding work urgently and to ensure that all compliance requirements and the current licensing provision were met, in respect of the import of kerosene fuel and its derivatives.

“Every taxpayer that is involved will be communicated with individually, in line with their applicable circumstances. Sars believes that this announcement will bring certainty to the industry, which will benefit the country’s economy and enable everyone to travel smoothly,” Sars said in a statement.

Fuels Association executive director Avhapfani Tshifularo said companies that applied for licences included Engen, Sapref, Shell and BPSA, adding that the expiration date for Shell was October 20. 

“It appears if things are not done soon, OR Tambo could have issues with stock in about mid-December,” Tshifularo told Business Day earlier this week.

The industry body, which represents the collective interests of the SA fuels industry, said the challenge arose after the termination of operations at Durban refineries, when Sars insisted during 2023 that affected parties should license their facilities in terms of the Customs and Excise Act.

With Michelle Gumede

pathers@businesslive.co.za

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