Govt pushes oil majors to open up fuel infrastructure access

Black traders warn that automatic leases could entrench dominance of access by foreign oil companies

- BANELE GININDZA

OIL MAJOR companies operating in South Africa will be compelled to give transformation partners greater access to key fuel infrastructure through a new Third-Party Access Framework being developed by Transnet National Ports Authority (TNPA).

The framework will set clear rules for how third-parties can access strategic fuel facilities, how capacity is allocated, and the processes governing monitoring, dispute resolution, compliance, and enforcement.

The move follows extensive engagement between government entities, oil majors, and black industrialists after concerns were raised about the impact of a Section 79 directive, which proposes the renewal of 25-year leases at Transnet's Island View Precinct (IVP) in the Port of Durban versus the Section 56 determination that allows for an open tender process.

The directive from the Minister of Transport has elicited concerns from several industry stakeholders.

Black traders with technical capacity and balance sheet strength to enter the market have warned that automatic lease renewals could entrench the dominance of foreign-owned oil companies and restrict access to critical storage infrastructure.

They argue that this would undermine efforts to diversify ownership and management in the petroleum sector.