Strategic Fuel Fund chair Riaz Jawoodeen has warned that the risk of petrol and diesel shortages in South Africa could\u00a0lead to an Eskom-like crisis.<\/p>\n
The Rapport newspaper quoted<\/strong><\/a> Jawoodeen as saying that South Africa does not have a crude oil shortage, but rather a problem with product shortages.<\/p>\n The reason for these product shortages\u00a0(which includes petrol and diesel) is a lack of refinery capacity.<\/p>\n According to the report, the risk of petrol and diesel shortages is increasing because international companies are not willing to invest in the country\u2019s four oil refineries.<\/p>\n The capacity of the four refineries \u2013 Chevron, Engen, Shell and BP, and Total \u2013 have dropped because of stricter environmental requirements on the production of fuel.<\/p>\n To address this problem, the Strategic Fuel Fund wants to build storage facilities for petrol and diesel using the money from the sale of 10 million barrels of crude oil in December.<\/p>\n The Department of Energy\u2019s decision<\/strong><\/a> to sell the country\u2019s strategic fuel stock came under fire recently, partly because of the low price at which it was sold.<\/p>\n \u201cThis fuel stock was negligently sold at $28 a barrel when the current price is around $49 a barrel,\u201d said the DA.<\/p>\n The DA said the sale has left the country vulnerable, with only enough oil in reserve to sustain SA for less than a day.<\/p>\n Jawoodeen dismissed the DA\u2019s concern<\/strong><\/a>, saying South Africa does not have a crude oil shortage, and the sale\u00a0did not put the country\u2019s strategic supplies at risk.<\/p>\n Here is the official petrol price for June 2016<\/strong><\/a><\/p>\n South Africa\u2019s petrol price explained in one infographic<\/a><\/strong><\/p>\n South Africa\u2019s petrol price vs the world<\/a><\/strong><\/p>\nMore on petrol<\/h3>\n