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Refineries face uncertain future as SA fuel standards lag

16th September 2016

By: Irma Venter

Creamer Media Senior Deputy Editor

  

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While not able to speak on behalf of the industry, South Africa’s refineries are probably grappling with the question of whether they can afford to upgrade their facilities to produce cleaner diesel and petrol, or whether it is more cost effective to close down, says Sasol senior technical adviser Adrian Velaers.

He says government’s proposed Clean Fuels 2 (CF 2) legislation would, for example, see the sulphur content in diesel drop to ten parts per million (ppm), as opposed to the currently allowed 500 ppm.

Velaers says it remains uncertain when the much-delayed CF 2 will be implemented.

National Association of Automobile Manufacturers of South Africa (Naamsa) director Nico Vermeulen says that South African fuel standards are more than a decade behind those of Europe and North America.

He says CF 2 was first set to be introduced in the middle of 2017, but that it has now been delayed to after 2020.

He emphasises that vehicle manufacturers in South Africa require cleaner fuels to provide local consumers with more efficient, greener vehicles. He says government has a responsibility to look after the health of its people and the environment.

He says there is currently “very little” debate over the effects of dirty fuel on people’s health.

Vermeulen also laments the fact that government has imposed a carbon dioxide tax on new vehicles sold in South Africa, but is not enabling the industry to provide new-technology, environment-friendly vehicles – requiring clean fuel – for consumers.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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