The Fuels Industry Association of South Africa has issued a warning about a potential jet fuel supply shortage that could disrupt operations at major airports in the country. The association highlighted the threat to the supply of aviation kerosene due to regulatory delays in the licensing of import storage facilities by the South African Revenue Service (SARS).
According to a press release issued on October 10, the closure of the Engen and Sapref refineries in KwaZulu-Natal has exacerbated the situation. In 2023, SARS mandated that affected parties must license their facilities in compliance with the Customs and Excise Act, which requires stringent licensing conditions for the importation of aviation kerosene into dedicated storage facilities.
While temporary licensing arrangements were initially granted by SARS to allow for the importation of aviation kerosene, the process of obtaining permanent licensing has been delayed. Despite assurances from SARS that the process would be completed in a timely manner, more than six months have passed without finalization of the permanent licensing.
The Fuels Industry Association of South Africa expressed concern that the regulatory uncertainty surrounding the licensing of import storage facilities is placing pressure on the planning and economic supply of aviation kerosene. This uncertainty could lead to potential stockouts, causing airlines to cancel scheduled flights and inconveniencing passengers. The reliability of airline traffic is also at risk due to the unreliability of aviation kerosene supply.
To prevent a supply crisis, the association has urgently called on the Minister of Finance to instruct SARS to extend temporary licenses for at least 12 months or until the necessary permanent licensing is finalized. This proactive measure is aimed at averting any disruptions to airport operations and ensuring the continued supply of jet fuel to airlines.
In April of this year, the Airports Company South Africa (Acsa) had already raised concerns about dangerously low fuel stock levels at OR Tambo International Airport, which had fallen below the acceptable five-day benchmark. While this issue was not related to the current licensing impasse with SARS, it underscores the importance of maintaining adequate fuel reserves to support airport operations.
The Airlines Association of Southern Africa has confirmed that there is currently no supply shortage of jet fuel. However, the ongoing regulatory delays with SARS could potentially lead to a supply shortage if not resolved promptly. It is crucial for all stakeholders to work together to address this issue and ensure the uninterrupted supply of jet fuel to support the aviation industry in South Africa.