South African tax authorities extend jet fuel lifeline to airports
South Africa's fuels industry body Fuels Industry Association of South Africa (FIASA) welcomed a year-long extension from tax authorities to special licenses for importing and storing jet fuel, helping to avert a potential supply crisis at major airports.
The FIASA said the arrangement meant its members could operate special storage warehouse (SOS) licenses until October 31 next year. The extension allows for continued imports of aviation kerosene, which will be stored in licensed tanks and pumped into the multi-product pipeline for supply to O.R. Tambo International Airport, one of Africa's busiest passenger hubs.
The license extension from the South African Revenue Service (SARS) also covers the separate importation and storage of illuminating kerosene mainly used in household cooking.
"The extension is a critical intervention in safeguarding South Africa's security of supply, particularly for the aviation sector and communities that rely on illuminating kerosene," FIASA said in a statement.
The importation and movement of both aviation kerosene and illuminating kerosene are governed by South Africa's Customs and Excise Act and its provisions needed to be strictly adhered to, SARS said previously when granting SOS licenses last year.
A net importer of refined petroleum products, South Africa has lost around half of its refinery capacity over the last five years, curtailing the provision of jet fuel to airports and leading to shortages.
In January this year, the national transport department took extraordinary measures in securing just over 121 million liters of jet fuel for O.R. Tambo airport after a fire at the Natref refinery caused it to shut down operations.
South Africa's only inland refinery majority-owned by Sasol, Natref crude oil refinery is one of the main suppliers of jet fuel to domestic airports.
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