Department says there is enough fuel, yet supply at filling stations is limited – so where is the fuel then?

Image: courtesy of FF Plus

In a media statement issued yesterday, the Department of Mineral and Petroleum Resources assured the public that the country has sufficient fuel supply, despite international conflict. However, the Freedom Front Plus (VF Plus) has been privy to letters from fuel suppliers warning filling stations of possible shortages.

A long list of filling stations that have already run dry is also circulating on social media. This raises the question: So where is the fuel?

The departmental explanation makes sense: Fuel orders placed before the current war broke out in Iran are due to reach South Africa only in early April. So, that should not result in domestic fuel shortages, in spite of the war. Yet independent fuel traders and agents of multinational companies are finding it difficult to obtain sufficient supply. The Freedom Front Plus has several letters to that effect in its possession.

One possible explanation is that stock is being held back until next month’s fuel price takes effect. At the moment, under recovery on petrol is around R4 per litre and on diesel approximately R7. This means that withholding stock could potentially maximise profits. 

Fuel shortages – whether real or artificially created – could inflict enormous damage on the economy. They may lead to price increases that ordinary consumers cannot absorb and even result in food shortages in vulnerable communities.

The country's summer-sowing regions are approaching harvest time. It would be disastrous if the crops are left standing in the fields. In fact, the entire South African economy is dependent on liquid fuel.

Sasol currently produces about 30% domestically, while the rest is imported. This makes South Africa extremely vulnerable during international conflicts.

The Freedom Front Plus trusts that the Department of Mineral and Petroleum Resources will maintain the transparency promised in its statement.