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By Dylan Bettencourt
- South Africa gets 80% of diesel from the Middle East since Iran blocked fuel exports through the Strait of Hormuz.
- Local fuel prices are rising because India added a new tax of R3.90 for every litre of imported diesel fuel.
South Africans are paying more for diesel as the country relies more on the Middle East for fuel. Most of the diesel used in South Africa now comes from overseas because local refineries are closing down.
Data from the Fuels Industry Association of South Africa (Fiasa) shows that 80% of diesel imports now come from the Middle East. This is a big jump from two years ago when it was only two-thirds. The country is getting most of its fuel from Oman, Bahrain and Kuwait, News24 reported.
The fuel crisis is getting worse because Iran has blocked the Strait of Hormuz. This has stopped fuel from being sent to the rest of the world. Because South Africa does not have enough of its own fuel, this makes the country very vulnerable.
India has also added to the problem. Last week, India put a new tax on diesel and jet fuel to protect its own supply. This means South Africans must pay an extra R3.90 for every litre of imported diesel. So far, India has not added these extra taxes to petrol.
Local refineries are struggling to keep up. Only two refineries are still working in South Africa. The Astron refinery in Cape Town is currently closed for maintenance. The Natref refinery near Sasolburg is only making jet fuel.
In 2019, South Africa refined 785,000 barrels of fuel every day. By last year, that number fell to only 385,000 barrels. This means the country now has to import 70% of its fuel products.
People are also feeling the pain when they buy paraffin. Prices for paraffin are hitting people hard because of the fighting in the Middle East.
Pictured above: The Natref refinery.
Image source: Sasol
