The Fuels Industry Association, CF2 and Imbizo 2026
Chief Executive Avhapfani Tshifularo discusses the new direction and key priorities of the Fuels Industry Association of South Africa, the 2027 implementation of the Clean Fuels II (CF2) regulation, and what we can expect from the 2026 Fuels Industry Imbizo.
closely with stakeholders, including the South African Revenue Service (SARS) and law enforcement, to combat illicit trade. This includes our advocacy efforts to eliminate fuel adulteration practices that undermine safety, emissions, and environmental goals. Industry supports stronger market surveillance, tighter licensing and a robust national fuel-marking programme to curb the sale of illicit products. Priority areas for the year 2025 The Association, together with its members, has identified six key priorities: security of supply, customs and excise regime reform, refinery support, petroleum product pricing reform, liquefied petroleum gas regulatory and safety improvements, and diesel adultera- tion prevention. “These are not merely operational con- cerns but rather systemic challenges that re- quire urgent policy responses, cross-sectoral collaboration and decisive leadership,” says Tshifularo. Security of supply: The Fuels Industry Association of South Africa has consistently highlighted the critical importance of securing long-term tenure leases for the liquid fuels infrastructure at South Africa’s ports. Without firm, reliable access to port infrastructure, our industry cannot guarantee a consistent supply of fuels to inland and industrial markets. Nor can the Association’s members justify the sig- nificant investment required to maintain and expand the country’s energy infrastructure. Historically, access to coastal oil im-
port infrastructure has been governed by lease and concession agreements with the Transnet National Ports Authority (TNPA). The Minister of Transport has recently issued a Directive under Section 79 of the National Ports Act, which represents progress in ad- dressing the long-standing uncertainty. Still, the Association maintains that some concerns may arise, and that further engagement is ur- gently required to ensure that the framework provides meaningful security of tenure. Reforming the Customs and Excise Regime : The Customs and Excise Act of 1964 remains deeply outdated. Initially developed in an era of domestic refining dominance, the Act fails to accommodate today’s reality of an import-driven, multi-product pipeline system supporting a globally integrated fuels market. Its limitations result in delays, inefficiencies and compliance confusion, particularly for importers of aviation kerosene, petrol, diesel and illuminating paraffin. We therefore welcome the announcement by the Minister of Finance in the 2025 Budget Review on Revenue Trends and Tax Proposals that, in the light of the fuel industry in South Africa shifting from local manufacturing domi- nance to importing refined petroleum prod - ucts, “SARS proposes to review the legislation on the fuel industry to align it with changes in this industry and to facilitate the movement and storage of fuel products.” “This review is not just welcome; it is es- sential. Modernisation of the Act must reflect current trade practices, reduce administra- tive burden, make compliance seamless, and remove bottlenecks in the movement and storage of fuel products,” Tshifularo notes. Refinery support: In the last 5 years, South Africa has lost three refineries. This contrac - tion of local refining capacity is more than a commercial concern; it is a strategic risk. In an increasingly volatile geopolitical landscape, a balanced approach to imports and local refining is necessary to mitigate the country's exposure to shipping delays and global supply chain disruptions. For nearly two decades, the Fuels Industry Association has advocated for government- backed financial support for the domestic re - fineries. “We believe the remaining refineries should be supported to secure South Africa’s
“T he rebrand from the South African Petroleum Industry As- sociation (SAPIA) to the Fuels Industry Association of South Africa (the Association) signals an intentional, long-term shift from ‘oil’ to an inclusive fuels ecosystem that includes liquid, gaseous and syn- thetic fuels, as well as the future infrastructure needed to power mobility,” begins the Associa- tion's Chief Executive, Avhapfani Tshifularo. The change, unveiled during our 30th anniversary conference in 2024, aligns with South Africa’s net-zero pathway and the need to improve air quality in our cities. “We convene technical, regulatory and market working groups that interface with standards bodies, such as SABS/SANS, and government to keep specifications current and enforceable. In terms of quality, our members adhere to SANS fuel standards. They are preparing for the introduction of the Clean Fuels II (CF2) by 2027, which is equivalent to the Euro 5 vehicle emissions standard. We also engage the Department of Minerals and Petroleum Resources’ (DMPR) pricing process to ensure fair, transparent and predictable pricing under the Basic Fuels Price (BFP) system. On fraud, he says, the Association works Avhapfani Tshifularo, Chief Executive of the Fuels Industry Association of South Africa.
The Astron Refinery in Cape Town is one of South Africa’s last remaining major oil refineries.
8 ¦ MechChem Africa • November-December 2025
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