SA hit by a diesel shortage
The opening of the economy has resulted in a more rapid recovery than expected, leading to dramatic increase in demand for diesel
The SA Petroleum Industry Association (Sapia) has stated that there is currently inadequate stock of diesel in the country.
“Since the easing of lockdown restrictions and the transition from alert level 5 to alert level 4, the opening of the economy has resulted in a more rapid recovery than expected. There has been a dramatic increase in demand for diesel,” reads a Sapia statement.
“Stock rationing is being implemented to manage demand and to preserve stock. Unplanned shutdowns were a contributing factor which led to this and the shortage. It is likely to continue until the end of May.”
More than half of SA's refining capacity was shut amid the lockdown, which started on March 27, that restricted activity to essential services and curbed demand. Those rules were eased and some industries were allowed to start operations this month.
Stockpiles of diesel are running low, the department of mineral resources & energy and energy said, according to Bloomberg.
Both refineries in Durban are currently starting up and on-spec production is expected by month-end. Diesel supply will then normalise, says Sapia.