Page 10 - AfrOil Week 29 2022

AfrOil PERFORMANCE AfrOil

Meanwhile, Sasol anticipates that the outage no one is refining crudes,” he said. “So, what we
at Natref will be temporary. The company said should be looking at is the finished price because
in its statement that crude oil shipments were people are paying premiums in the global mar-
expected to start arriving shortly and that the ket, at the moment to get finished product ... If
plant would be able to ramp up to maximum we’re paying substantially more than we would
production by the end of July. have had we been refining, you start having that
According to the Observatory of Economic expectation that the price is coming down, but
Complexity (OEC), South Africa imported the price that we’re importing at is not coming
$5.09bn worth of crude oil in 2020, mainly from down at the same rate.”
Nigeria, Saudi Arabia, Ghana, United Arab A government official, however, said short-
Emirates, and the United States. Crude oil is the ages of ordinary petroleum products are
country’s biggest import. unlikely. “I don’t expect that diesel and petrol
Peter Morgan of the Fuels Wholesalers Asso- would be affected greatly. However, we are con-
ciation of South Africa (LFWA), told Cape Talk cerned about the impact this is going to have
radio on Monday (July 18) that independent fuel on the availability of jet fuel,” Tseliso Maqubela,
wholesalers would be hardest hit by the Natref deputy director general of Mineral and Petro-
closure. leum Regulation at the Department of Mineral
“If you look at it now and say, ‘Wonderful! Resources and Energy said, according to the
The crude price has softened,’ at the moment, channel. ™

Zimbabwe’s blackouts boost LPG demand

ZIMBABWE THE intensification of electricity blackouts in has increased load shedding, a term used locally
Zimbabwe since July 13 has triggered a spike to describe the severe rationing of power across
in demand for LPG in Bulawayo, the country’s the country to prevent the grid from collapsing
second-largest city. and ensure that critical services, such as hospi-
NewZimbabwe, a local online publication, tals and farms, share the limited power available.
said on July 18 that some retail outlets had run State-owned ZETDC said on July 13 it was
out of the product, while those that still had it in tightening the load-shedding programme.
stock had increased prices. Power cuts across the country have resulted
“Since Thursday, I have been trying to buy in urban residents becoming increasingly reli-
cooking gas at my usual place to no avail,” said ant on LPG for cooking, while households with
Milcent Chikomba, a resident of low-density fewer resources use firewood.
Paddonhurst Suburb. “The workers told me According to NewZimbabwe, before the cur-
that since the introduction of the load-shedding, rent shortage, cooking gas cost $2.20per kg, but
they have not been able to cope with the high some outlets are now selling the same quantity
demand for cooking gas. Because of the current for $3 per kg.
electricity shortages, I am desperately in need of “Only two weeks ago, I bought a kilogramme
gas to cook for school children in the morning.” of gas for $2, but today I bought the same quan-
High winter demand, low local generating tity at almost $3. This is really unfair. The gov-
capacity and a shortage of foreign currency to ernment should do something because every
import electricity have put pressure on the grid household is now relying on gas because of the
in recent weeks. current shortages,” said Mildred Ncube, a resi-
In response, the Zimbabwe Electricity Trans- dent of Pumula, a high-density suburb of Bul-
mission and Distribution Company (ZETDC) awayo. ™

LPG has gained popularity in Zimbabwe in the face of load-shedding (File Photo)

P10 www. NEWSBASE .com Week 29 20•July•2022