Recent statements from Acsa and AASA about jet fuel shortages at OR Tambo International Airport (JNB) have highlighted a growing crisis: limited fuel infrastructure and reliance on imports are putting airline operations at risk, potentially threatening the airport’s long-term viability as a hub.
A lack of infrastructure
Natref’s recent fire and compromised jet fuel refining capabilities is just the most recent setback in South Africa’s ongoing supply challenges. The crisis dates back to 2021, when the Durban refinery was damaged during unrest and the Durban-Reef railway line was rendered unserviceable due to floods. Furthermore, the closure of the Astron refinery in Cape Town added to the woes, although it reopened last July and is recovering production.
According to Terence Delomoney, Group Executive for Operations at Acsa, it’s not just about increasing jet fuel refining capacity in the country, but also about increasing storage.
“If we can't increase refining capacity, we are going to be importing more. And the only way we can import more is if we have more storage capacity in the country,” he explained during his briefing on the JNB jet fuel shortage.
Aasa pointed out that this uncertainty regarding the management of fuel reserves and the security of the jet fuel supply had negatively impacted airlines’ ability to fulfil their schedules and obligations to passengers.
Shortage plagues airlines
Aaron Munetsi, CEO of Aasa, pointed out that the reliance on imported jet fuel directly affected airlines’ operational costs.
“These (refinery closures) left the industry heavily reliant on imported jet fuel, for which airlines operating within and from South Africa are forced to pay an exorbitant premium reflecting the additional logistics, duties and other costs applied to the fuel before it gets anywhere near an aircraft fuel tank,” said Munetsi.
Furthermore, these increased costs ultimately trickle down to passengers, making travel more expensive and, in some cases, less efficient when refuelling stops or alternative routing become necessary, explained Barsa (Board of Airline Representatives of SA).
“The knock-on effects include delays, reduced scheduling flexibility, and potential reputational risks for airlines operating in the region,” said George Mothema, CEO of Barsa.
Could airlines pull out?
From a strategic perspective, JNB is a key aviation hub for Southern Africa, but the inability to provide a stable, cost-effective fuel supply could force airlines to reconsider their operations.
“Airlines require a stable and cost-effective fuel supply to sustain their operations, and ongoing constraints may lead to airlines reassessing their commitment to South African routes or even shifting operations to alternative hubs,” warned Mothema.
“Barsa strongly supports the ongoing collaboration between the Minister of Transport, the Minister of Mineral and Petroleum Resources, and other key stakeholders in addressing the long-term sustainability of South Africa’s jet fuel supply. Ensuring a stable and cost-effective fuel supply is crucial for maintaining the country’s aviation competitiveness, and Barsa looks forward to continued engagement to find sustainable solutions that benefit both airlines and passengers,” he concluded.
