The South African Revenue Service (Sars) noted that it will engage with representatives in the SA fuel industry to avert a crisis if there is a shortage of jet fuel (also known as kerosene).
The move by Sars comes after a warning was issued by the Fuels Industry Association of South Africa (FIA) over a looming fuel shortage.
The fuel association said that the supply of aviation kerosene is facing severe threat and may soon run out. The main reason for the shortage is due to regulatory delays in the licensing of import storage facilities.
In a statement, Sars clarified that it was not responsible for the industry's shortcomings in meeting the licensing requirements outlined in the Customs and Excise Act.
Phila Mzamo, spokesperson for FIA said that “the Act does not provide for changes in the industry; for example, it lacks transition mechanisms to special storage warehouse (SOS) status”.
The urgency of the situation has been amplified by recent developments in KwaZulu-Natal, where the closure of the Engen and Sapref refineries has strained local production capabilities.
Sars gets criticised
Several news articles have called on Sars to intervene immediately.
The revenue agency has denied that the shortage is due to Sars and its apparent failure to issue licences to fuel companies in a timeously fashion.
“This is an incorrect position. The importation and movement of both aviation kerosene and illuminating kerosene is strictly governed by the Customs and Excise Act. It is the adherence to the provisions of the Act that has proven difficult for the fuel industry,” Sars said in a statement.
“Sars wishes to clarify that the demand for both aviation kerosene and illuminating kerosene in the Republic is met by the supply from licensed fuel manufacturers (refineries) and importation.”
Sars noted that a number of coastal refineries have stopped manufacturing kerosene due to a number of reasons and so the industry has had to rely on importation.
“During April 2024, some of the refineries applied for and were granted temporary special storage warehouse (SOS) licenses for the storage and subsequent distribution of imported aviation kerosene to OR Tambo International Airport and other airports,” Sars noted.
“This was done to avert an impending crisis of the shortage of aviation kerosene that was occasioned by statutory maintenance of certain refineries.”
Engaging with the industry
The revenue service said that they will continue to engage with the industry to create a long-form solution that can be implemented immediately.
“It is in Sars’ interest that the country’s economy and travelling is not impeded in any way. It is equally important that all the role players should also act expeditiously in meeting their obligations,” the revenue service added.
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