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Supply issues threaten OR Tambo fuel stock

11 Apr 2024 - by Kiran Molloy
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Last week, jet fuel stock at OR Tambo reportedly fell below its benchmark of five days’ supply.

Acsa has issued a statement admitting that the stock shortage did occur, attributing it to the preparation of a planned shutdown from May to June of an inland refinery, which is the main supplier of jet fuel to the airport. Acsa said the shutdown would increase its reliance on imported fuel from Durban.

But, in an April 8 article in Business Report, Rodger Foster, CEO and MD of Airlink, revealed that Airlink was aware of a dispute in progress between Sars and fuel suppliers over duties on transferring jet fuel from Durban to OR Tambo.

Acsa’s statement admits it is indeed participating in deliberations between Sars, the South African Petroleum Industry Association (SAPIA) and the petroleum companies, to resolve the tax dispute relating to those duties, and that the dispute is creating a potential crisis in jet fuel supply to OR Tambo.

The impasse may continue into May, coinciding with the Johannesburg refinery’s shutdown, posing another risk to Acsa’s OR Tambo fuel supply.

“At this stage, Acsa is communicating with all parties as they are attempting to resolve these matters, and requests patience from stakeholders until we receive firm feedback from Sars, SAPIA and the petroleum companies on the resolution of this matter,” says Acsa’s statement.

However, a number of airlines operating from OR Tambo told IOL on April 8 that they had been unaware of fuel shortages at the airport. 

According to Miles van der Molen, CemAir CEO, there was very little clarity and transparency from Acsa when he raised the points made in the Business Report’s article.

“There were issues today (April 10), as a third of the jet fuel delivery vehicles are not serviceable,” said Van der Molen, adding that airlines were concerned about the planned shutdown of the fuel refinery in the middle of May.

George Mothema, Barsa CEO, said Barsa was not aware of any potential fuel issues at OR Tambo. 

“However, we are still investigating as this has not been reported to the Fuel Forum,” Mothema said on April 10.

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