Cape Town Fuel Shortage Expose SA Refinery Sector’s Shortfalls

Following months of fuel price reductions courtesy of a stronger Rand and improved global outlook, Cape Town was recently set back with a fuel shortage anomaly which highlighted the precarious position the Cape provinces face for refined crude oil. 

Recently, the Cape Town metro experienced a scarcity of higher-octane 95 ULP following an unexpected refinery outage. To alleviate the shortage, a fuel vessel initially bound for Durban was diverted to Cape Town, although rough seas delayed its arrival. The issue has since been resolved, but with fuel prices set to rise again in November, Eugene Herbert, CEO of MasterDrive, urges South Africans to adopt fuel-saving habits which are listed below.

“Fuel costs and availability are ongoing challenges,” says Herbert. “This is an opportunity to drive economically and reduce fuel consumption, especially with holiday travel around the corner.” To help motorists manage costs, MasterDrive provides ten practical tips to improve fuel efficiency, which is especially beneficial during times of shortages or price hikes.

Related: November the Beginning of the End of Fuel Price Reductions

• Tyre Pressure: Regularly check your tyre pressure to match the manufacturer’s specifications. Proper inflation can reduce rolling resistance and save 3-5% in fuel consumption.
• Telematics: Use telematics data for route planning and to identify fuel-consuming driving behaviours. This technology can reduce consumption by 5-15%.
• Accelerate Gently: Smooth acceleration and maintaining a safe following distance minimize frequent braking and accelerate fuel savings by up to 15%.
• Efficient Gear Changes: In manual cars, shifting gears before reaching 3 000 r/min improves fuel efficiency and can save up to 20%.
• Defensive Driving: Learning defensive driving techniques, such as anticipating traffic, can result in fuel savings ofup to 20%.
• Lower Speed: Reducing speed by 20 km/h can lower fuel consumption by 20%, as higher speeds increase rolling resistance and drag.
• Avoid Aggressive Driving: Staying calm on the road can improve fuel efficiency by 15-30% on highways and 10-40% in stop-and-go traffic.
• Lighten the Load: Every unnecessary item in your car increases fuel consumption by about 1%.
• Plan Your Route: Efficient route planning reduces unnecessary mileage, especially valuable for fleets.
• Avoid Idling: If stationary for more than 30 seconds, consider turning off your engine, as idling wastes fuel.

“Relying on a single tip may not yield significant results,” cautions Herbert. “But combining these strategies across various driving habits can make a noticeable difference.” 

In terms of understanding how the Western Cape suffered this shortage, it is important to understand how the oil industry locally works. Divided into upstream and downstream activities,  the former refers to the exploration and production of gas and crude oil while downstream refers to the refining, transportation and marketing of end-user products. South Africa has no crude oil reserves of its own and all of its crude oil requirements are met by imports principally from the Middle East and other parts of Africa. Foreign-sourced crude oil is then refined into various grades of fuels at South Africa’s four crude oil refineries detailed further below.

With this aside, the recent fuel shortage exposes a chink in the armour of South Africa’s reliance on downstream activities. The Astron Energy refinery, located in the Western Cape is the sole refinery in the entire western part of the country, aside from the PetroSA synthetic refinery also in the province. These serve as a total of 6 crude oil and coal/gas refineries located throughout the country. According to the Fuels Industry Association of South Africa, the Astron refinery has an output of 100 000 barrels per day, which significantly contributes to the other crude oil refineries in the country. Enref (Engen Petroleum) based in Kwa-Zulu Natal churns out 120 000 barrels per day while Natref (Sason and Total Energies collaboration) manages 108 000 per day at the inland refinery. Sapref (Shell and BP) tops the contributions with 180 000 barrels per day at its Zwa-Zulu Natal refinery. The other contributors are Sasol’s Secunda refinery with 150 000 barrels per day while PetroSA (in the Western Cape) with its Gas processed refinery only delivers 45 000 barrels per day. All of these operations supply the approximately 4 000 forecourts (service stations) located throughout the country.

“We are pleased to confirm that the situation has been resolved and the refinery is fully operational, and we are able to meet demands going forward. We regret any inconvenience caused,” – Astron Energy.

There is no knowing whether an issue like this could occur again in the future, but this anomaly has highlighted the Western Cape’s dependence on its solitary crude oil refinery and the critical output required to keep the province and western region of the country going. On the upside, this can be a cautionary tale to all other downstream players in the country.

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