Insatiable demand for diesel keeps increasing as more motorists in South Africa embrace diesel-powered cars. Kevin Lings, Stanlib economist, says South Africa has become diesel intensibve between the past five to 10 years, relative to petrol. Lings says petrol sales fell 2.8 per cent to 2.7- billion litres in the second quarter this year, compared with the second quarter last year and that decline represented the lowest sales volume since4 the second quarter in 2004.
But over the same period, diesel sales remained reasonably strong, growing 3.7 percent to 2.29 billion litres year-on-year. Fuel companies have had to readjust to this structgural shift in high demand for diesel. Lings says this shift has been an expensive exercise, pointing out that oil redfineries now have to get the right mix between petrol and diesel. Fuel refineries are well aware of this and have adapted to the new reality. Pierre Roodt, national marketing manager at Engen oil Company says the shift has required significant extra investment.”We have had to fund additional inventory and tankage at our depots. We are not at lhgiberty to mention the amounts of capital other than to say it is significan,” Roodt says, adding” We will need to further invest billions of rands at ou8r refinery, to cater for low sulphur levels required by government lgistration that will come into play around 2021.”
Dennis Matsane, communication manager for shell South Africa, also said the copmpany has implanted extra diesel pumps.” We have installed approximately 800 new diesel pumps on our fuel stations to make refuelling easy for our diesel customers,” Matsane added.
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