WITH a damaged fuel berth at the Port of Port Elizabeth, the Liquid Fuels Wholesalers Association says that the region is currently incorrectly classified as ‘coastal’ in the regulated pricing model.
The CEO of the Liquid Fuels Wholesalers Association of South Africa, Roger Morgan explains that the selling price of petrol in South Africa is regulated at the pump. Refined fuel is sold at a higher price inland to accommodate the transport cost of moving fuel from coastal ports. “Refined petroleum products are transported by road, pipeline and by a combination thereof from coast to inland depots.” The model is a cost recovery-only model.
With the berth at Port Elizabeth out of action, Morgan says, “The additional cost of collecting fuel from East London or Mossel Bay cannot be passed on to the fuel retailer.”
He says the Department of Mineral and Petroleum Resources has previously done extensive work including the new groupings should Port Elizabeth not function as an import terminal.
“The industry (4 associations) approached the Department asking that this anomaly be corrected. This correction will only be while Port Elizabeth is out of commission – once this is corrected then the pricing will be moved back to where it is now,” Morgan says.
On 7 June 2024 a petroleum vessel collided with the berth – the berth which is now out of commission. Morgan said the situation will hopefully be rectified in January 2025.
The Department of Mineral and Petroleum Resources has not issued a statement, but one is expected before September fuel prices are confirmed.
