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Amendments Proposed to Mandatory Blending Regulations

March 16, 2021

Department of Mineral Resources and Energy

Amendments are proposed to Regulations Regarding the Mandatory Blending of Biofuels with Petrol and Diesel.

The mineral resources and energy department published the Draft Regulations in Government Gazette 44265 for comment.

The Regulations, drawn up in terms of the Petroleum Products Act, came into effect in 2015.

The Regulations deal specifically with the requirements and conditions for the mandatory blending of bio-ethanol and biodiesel with petrol and diesel respectively that can be sold in South Africa.

They set down conditions of mandatory blending.

Biofuels can only be purchased from a licensed manufacturer of bio-fuels.

Manufacturers of petrol are not allowed to refuse to buy either bio-ethanol or biodiesel unless they can show that they do not have enough petrol or diesel to mix with the biofuels.

All manufacturers of bio-ethanol and biodiesel must submit records to the department at the end of each month.

In the Draft Regulations, new definitions on bio-ethanol and biodiesel are proposed.

A proposed new definition on “regulated price means the transfer price of biodiesel or bio-ethanol, as regulated by the Minister of Energy, charged by a licensed biofuels manufacturer to a licensed petroleum products manufacturer”.

The Draft Regulations focus on purchase and mandatory blending of biofuels, prohibitions and records to be kept by licensees.

Comment is invited within 60 days.