The supply of aviation kerosene in South Africa is under severe threat, with regulatory delays risking a critical fuel shortage that could disrupt operations at major airports, including O.R. Tambo and King Shaka International Airports. The ongoing licensing delays have created uncertainty in the aviation sector, and immediate intervention is necessary to avoid widespread disruptions.
The current issue stems from stringent licensing conditions outlined in the Customs and Excise Act, 91 of 1964 (the Act), which regulates the importation of aviation kerosene into storage facilities. Following the cessation of operations at Durban’s refineries, the South African Revenue Service (SARS) mandated in 2023 that all affected facilities be licensed under the Act. To ensure continued fuel supply, SARS issued temporary licenses for aviation kerosene imports while permanent licenses were being processed. The applications for these permanent licenses were completed in February 2024, but SARS has yet to finalize the process.
The current temporary licensing arrangement, set to expire in October, leaves the aviation industry on edge. Without an extension or finalization of permanent licenses, the supply chain of aviation kerosene to O.R. Tambo, King Shaka, and other airports dependent on Durban-based imports could be severely impacted. Such a supply shortfall could lead to flight cancellations, passenger inconveniences, and significant economic fallout for South Africa’s aviation sector.
Local companies are also hesitant to import fuel without the necessary regulatory approvals in place. This uncertainty puts pressure on the planning and economic sustainability of aviation kerosene supply, creating potential for supply chain failures that could reverberate through the airline industry. Airlines, faced with the prospect of kerosene stockouts, are likely to cancel flights, further damaging the reliability of South Africa’s aviation infrastructure.
The Fuels Industry Association of South Africa has issued a call to action, urging the Minister of Finance to instruct SARS to extend the temporary licenses for at least another 12 months or until permanent licensing is finalized. Failure to act swiftly, the Association warns, could result in a severe fuel crisis that would cripple South African aviation.
The industry is also calling for the Act to be urgently revised to reflect modern practices, emphasizing that current regulatory constraints are stifling both local businesses and potential new market entrants. In an industry that has seen significant changes over the past few years, these outdated regulations no longer serve the best interests of the sector or the broader economy.
About the Fuels Industry Association of South Africa
The Fuels Industry Association of South Africa represents the collective interests of the country’s fuels industry, playing a strategic role in addressing key issues related to the refining, distribution, and marketing of petroleum products. The Association promotes the industry’s environmental and socio-economic progress by contributing to the development of regulations, proactively engaging stakeholders, and providing expert advice. Through sharing research and communicating the industry’s views, the Association ensures that it remains an essential part of South Africa’s fuel supply ecosystem.
SOURCE: FUELS INDUSTRY ASSOCIATION OF SOUTH AFRICA -Phila Mzamo.
