Nokwanda Dlangamandla | kzn@radioislam.org.za

1 min read | 13:45 CAT

Photo Credit: LFWA

South Africa is on the verge of the potential of “fuel-shedding” due to a lack of strategic fuel stocks and refineries.

The Liquified Fuels Wholesalers Association has cautioned South Africa that gasoline rationing may occur in the future if the 2006 Moerane Report proposal to maintain a 90-day strategic stock is not carried out.

Last week, in a business report, Peter Morgan, the LWFA’s CEO, argued that it was time for the nation to address this issue finally. The recommendations were allegedly made to ensure liquid fuels were offered in sufficient quantities and at a reasonable cost.

The Transnet labour unions went on a week-long strike earlier this month, impacting the continent’s largest industrialised economy. The crisis was reportedly avoided when import terminals and imports arrived just in time, especially as South Africa had no strategic stocks during the Transnet wage strike.

The research also suggested that the petroleum pricing regime be thoroughly reviewed to address issues with the zone differential and eliminate inefficiencies and unintended transportation subsidies.

To inform the nation about the fuel reserves, the Democratic Alliance urgently questioned Energy Minister Gwede Mantashe, who claimed that South Africa had 10 million barrels of strategic crude oil stockpiles.