Hundreds of fuel stations run dry 24 hours before record price hikes in South Africa – report
Well over 100 petrol stations are temporarily dry, putting major strain on the country’s fuel delivery system as motorists rush to fill up before record-high prices kick in.
As of Monday, 30 March, News24 reported that hundreds of service stations had run out of petrol and diesel as demand surged in the final 24 hours before the expected increases take effect.
However, industry leaders have said the issue is not a lack of fuel in the country, but the ability to get it to forecourts quickly enough.
Speaking to News24, the Fuels Industry Association of South Africa said supply depots still have stock available, but delivery networks are under pressure.
The pressure on local fuel supplies comes amid heightened concern over global energy markets following tensions involving Iran and the closure of the Strait of Hormuz, one of the world’s most important oil and gas shipping routes.
The closure has raised fears about global supply disruptions and added to already soaring fuel costs.
South Africa has some protection from this because its crude oil is largely sourced from Africa and the Atlantic basin rather than the Middle East.
Calls for government assistance
However, the country remains vulnerable to diesel shortages, as most of its finished diesel imports come from countries such as India, Oman, the United Arab Emirates, and Saudi Arabia.
Another complicating factor is the way diesel is priced. Unlike petrol, which is regulated, diesel prices are not fixed by the government.
Wholesalers and retailers are free to set their own prices, which creates room for sharp price differences between service stations.
With diesel expected to rise by around R10 per litre and petrol by roughly R6 per litre in April.
Concerns have also emerged that some stations may be trying to preserve existing stock to sell it at much higher prices once the increase kicks in.
In areas where fuel is still available, some petrol stations in Johannesburg and other major cities have reportedly started rationing supply, limiting motorists to 30 litres per vehicle.
As diesel runs short across the country, AgriCulture South Africa and the Agricultural Business Chamber of South Africa have said the fuel shortage has already impacted farmers.
It noted that panic buying, supply tightness and delivery delays have left many service stations without diesel, disrupting farming operations.
Fuel stations in Kakamas and Upington have reportedly run dry, while other provinces are restricting sales to between 40 and 100 litres per customer.
The looming hikes have also sparked political pressure for intervention. DA finance spokesperson Dr Mark Burke has called on the government to cut the fuel levy by 50% to cushion consumers and businesses from the shock.
“Petrol price increases will drive up taxi fares, they will drive up food prices, and they will drive down growth,” Burke said.
“We need to protect South Africans from them, especially if the price we pay is less patronage.”
Burke said the Democratic Alliance is willing to work with Finance Minister Enoch Godongwana to reduce both the Road Accident Fund levy and the General Fuel Levy by half for as long as the oil price shock lasts.
Despite the growing panic at forecourts, Mineral and Petroleum Resources Minister Gwede Mantashe has sought to reassure the public that South Africa is not facing a fuel shortage.
“Despite the heightened geopolitical risk, South Africa’s current petroleum supply security arrangement remains robust,” Mantashe told Parliament.
He added that South Africans should not panic, insisting that the country’s overall fuel supply remains stable.
(This article has been updated to remove specific quotes and further clarify attribution to News24)
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