S African diesel shortage persists amid pipeline theft

South Africa continues to suffer from a diesel shortage as state-owned logistics firm Transnet struggles to contain a sharp spike in pipeline theft and vandalism.

There have been 38 attempted thefts recorded in the last three months, of which 34 were successful. In the 12 months prior to that, there were 181 such incidents.

The national multi-product pipeline (NMPP) — which transports diesel, gasoline and jet fuel from Durban to Gauteng — has been operational for less than 40pc of the time over the last three weeks because of thieves installing "hot taps" on the line. The pipeline can transport 3mn litres/hour of fuel when fully operational. More than 2mn l has been lost from the beginning of April to mid-June.

The thefts have mainly taken place in Gauteng and Mpumalanga, but the incidents have become more sporadic across the network recently. Transnet's 3,800km pipeline network transports 250mn l of gasoline and diesel, 100mn l of crude and 25mn l of jet fuel a week.

"Repair teams are moving from one site to another and are at the point of exhaustion," Transnet said. Evidence points to three well-organised and equipped crime syndicates being involved. "Criminals are found to be armed and the majority arrested are foreign nationals," the firm said. Perpetrators also approach landowners and promise them financial compensation in exchange for access to land and pipelines.

To counter the thefts, Transnet has deployed tactical response teams at identified hot spots, along with eight drones that are operational 24 hours per day. It has also formed partnerships with law enforcement agencies. These initiatives have yielded 91 arrests so far, with 30 fuel tankers impounded.

South Africa's diesel shortage began to emerge in May, when an easing of the country's Covid-19 lockdown led to a recovery in demand. Unplanned refinery shutdowns also contributed to the shortage.

During the country's level five lockdown, the 180mn l Jameson Park oil product storage terminal in Gauteng province, which is supplied by the NMPP, was full to capacity. But stocks became depleted in the first week of May after the South African goverment reduced the Covid-19 alert level to four. Demand has increased further since the lockdown was eased to level three on 1 June.

Agricultural federation AgriSA has called on the government to launch an urgent inquiry into the diesel shortage. Pipeline vandalism and theft is forcing diesel to be transported by trucks, which is more costly, it says.

"Farmers harvesting produce such as maize, citrus and other commodities are particularly hard hit," AgriSA said. The situation is especially acute in the northern provinces of Limpopo and North West.

The agricultural value chain is heavily dependent on diesel for harvesting and transporting produce, so a prolonged shortage could impact food security, AgriSA warned.

The Democratic Alliance (DA) opposition party has requested an urgent debate in parliament. But the Portfolio Committee on Mineral Resources and Energy said it was reassured by the Department of Mineral Resources and Energy (DMRE) that the shortage is due to short term logistical issues and not a serious concern. The committee decided that the DMRE need only address the issue at a meeting on 19 August.

They are "both in denial about the seriousness of the situation", according to the DA, which has cited reports that wholesalers in various provinces have been unable to obtain diesel for about four weeks.

"The situation on the ground differs from the picture often painted by those responsible for managing the supply of diesel that there is enough diesel available," AgriSA said. "Farmers are battling to buy diesel for harvesting purposes. Many other industries too."

By Elaine Mills