LPG shortage: Government must take urgent action to avoid economic disaster
The country-wide Liquid Petroleum Gas (LPG) shortage is reaching critical levels. Senior officials in the South African Tourism Association have informed the DA that OR Tambo's jet fuel supply is on the verge of running out. At the same time, South Africans have not been able to buy new gas, paraffin or other related products for several weeks now. If the problem persists much longer it could have disastrous implications for our economy.
A gas shortage has the potential to close down businesses and kill jobs, as well as affecting the daily lives of people who rely on gas for cooking food or heating their homes. It is therefore vitally important that our government does everything in its power to resolve the LPG shortage as quickly as possible.
It should start by fixing the government-run PetroSA gas refinery in Mossel Bay. I will meet with the Chairperson of PetroSA's board, Dr Benny Mokaba, to discuss possible solutions for the problem at the Mossel Bay refinery.
But this is only a small part of the problem. The severity of the shortage is driven by the fact that several privately owned refineries have also shut down for maintenance at the same time. Government needs to coordinate a response with these refineries. I will meet with the relevant parties in the private sector and the Department of Energy to encourage further cooperation in resolving this crisis. Government should provide any assistance it can to speed up the recovery of lost private-sector refining capacity.
The tentative expectation is that refining capacity will only recover by mid to late November, which means we could run dry some time in November if urgent action isn't taken to speed up the process. I will do everything in my power to ensure that the Department of Energy and PetroSA take this issue as seriously as they should.