Energy ministry confident SA won’t run out of fuel
The energy ministry says there's no risk SA could run out of petrol during a global oil crisis.
JOHANNESBURG - Both the Strategic Fuel Fund and the energy ministry say there's no risk that South Africa could run out of petrol during a global oil crisis, as the result of the sale of a large amount of the country's strategic fuel stock.
The Business Day newspaper said this morning that around ten million barrels of crude oil had been sold for a low price without the Treasury first giving its permission.
But the fund says that the transition was a rotation, and not a sale, and thus it didn't need the treasury's permission.
The fund's chair Riaz Jawoodeen says the deal won't put South Africa's strategic supplies at risk.
"There isn't a crude oil shortage for us at all. Our problem is actually going to come from product shortages because the company doesn't have sufficient refining capacity."
The ministry says the sale of the country's strategic fuel stock by the strategic fuel fund will not put the country at risk during a global oil crisis.
The ministry's deputy director general Tsediso Maqubele says South Africa can still use that fuel if it needs to.
"The model they are using at Saldana now is one where the crude oil that is stored at Saldana, the country still has first right of refusal if there were to be a crude oil emergency."