News

The South African petroleum industry will be ready for the 2010 FIFA World Cup when demand is expected to spike significantly across the entire supply chain of petrol, diesel, and particularly, jet fuel.

That’s the assurance from Maurice Radebe, incoming chairman of the South African Petroleum Industry Association (SAPIA), the representative body of manufacturing and wholesaling companies in the petroleum industry.

Radebe says a major programme is being developed by a World Cup Fuel Task Team chaired by the Department of Energy to ensure that about 2.7m spectators are able to travel to the 64 matches scheduled over the approximately 40 day period beginning on June 11 at stadiums around the country.

“Visitors and teams will start arriving two to three weeks prior to the tournament and many will stay on afterwards to holiday in the country, so from a fuel supply perspective, this will be a major logistical exercise, the likes of which we may never see again” says Radebe.

SAPIA, Transnet, ACSA, the Department of Energy and various other stakeholders are co-operating to ensure all petroleum products will be available he said.

“Stock levels are the key. Refineries will be producing at top capacity ahead of and during the event and import, distribution and storage facilities will all be optimally utilised.

“We will be ready to meet the needs of transport operators, airlines, tourist destinations, industry and commerce in the run up to the FIFA World Cup and beyond when South Africa will be showcased to the world.”

The massive fuel supply build-up for the event also focussed attention on the issue of continuity of supply in the fuel industry into the future he said – something to which he would give considerable attention during his tenure as Chairman.

“Importantly the FIFA World Cup has provided a basis for co-operation by all stakeholders in the petroleum industry which will be invaluable over the next five to ten years as critical supply and production issues are tackled. It is for this reason that the industry has applied for exemption from the Competition Commission. This exemption will allow the necessary co-operation.

“Supply disruptions have probably been avoided to date and in part, because of the economic slowdown and the inland areas, the industrial and economic heartland of the country, are the most vulnerable in this respect.

“There is a close link between the petroleum industry and economic growth. In order to increase production to fuel South Africa’s growing economy and meet the demand for cleaner burning, more efficient fuels, large investments will be needed by the industry. Issues of timing, funding and cost recovery mechanisms for the refineries and other stakeholders to meet the multi billion Rand cost of these developments have to be taken into account.”

“The basis for working together in preparation for the FIFA World Cup should be taken forward to meet these challenges, working within the framework of the Energy Security Master Plan agreed to by Cabinet in 2007.”