Home  »  Articles   »   Regulations on Mandatory Blending of Biofuels with Petrol and Diesel Amended

Articles
Regulations on Mandatory Blending of Biofuels with Petrol and Diesel Amended

September 3, 2021

Department of Mineral Resources and Energy

Regulations Regarding the Mandatory Blending of Biofuels with Petrol and Diesel have been amended.

The mineral resources and energy department published the amended Regulations in Government Gazette 45080 in terms of the Petroleum Products Act.

The department sought comment on the regulations at the end of March 2021.

A new definition on bioethanol is inserted.

It stipulates that “bio-ethanol means ethanol derived from plant material (including crops, agricultural and forestry residues), animal residues, industrial and domestic/municipal waste as well as other organic and/or renewable resources. The ethanol must conform to the applicable South African National Standard”.

A new definition on “biodiesel” is also inserted.

“Biodiesel means a renewable fuel or fuel component derived from plant material (including crops, agricultural and forestry residues), animal residues, industrial and domestic/municipal waste as well as other organic and/or renewable resources. This renewable fuel or fuel component must conform to the applicable South African National Standard”.

A new subregulation (1) is inserted into Regulation 4 including reference to bioethanol or biodiesel manufactured by a licensed biofuels manufacturer.

The amended Regulations came into effect on the date of publication.

Meanwhile, the department, in a statement, indicated that one of the reasons for the adjustment in fuel prices for September 2021 is that the average Brent Crude oil price decreased slightly from 74.00USD to 72.50USD per barrel during the period under review.

Other reasons include the movement in international refined petroleum product prices that led to lower contributions to the Basic Fuel Price of petrol by 24.18 c/l, diesel by 36.48 c/l and 36.11 c/l and illuminating paraffin by 27.68 c/l; the depreciation of the Rand, on average, against the US Dollar (from 14.54 to 14.77 Rand per USD) leading to higher contributions to the Basic Fuel Prices of petrol, diesel and illuminating paraffin by 13.23 c/l, 12.16 c/l and 11.96 c/l, respectively; an increase of 8.78 c/l (i.e. from 6.58 c/l to 15.36 c/l) into the price structures of petrol and diesel in line with the Self-Adjusting Slate Mechanism rules and the approval of a 5.7 cents per litre increase in the price structures of petrol to accommodate wage increases for Forecourt employees in line with the Motor Industry Bargaining Council (MIBCO) Agreement.

Fuel price adjustments for September 2021 include:

• Petrol (both 93 ULP and LRP): four cents per litre (4.00 c/l) increase;
• Petrol (both 95 ULP and LRP): four cents per litre (4.00 c/l) increase;
• Diesel (0.05% sulphur): fifteen point two two cents per litre (15.22 c/l) decrease;
• Diesel (0.005% sulphur): fourteen point two two cents per litre (14.22 c/l) decrease;
• Illuminating Paraffin (wholesale): fifteen cents per litre (15.00 c/l) decrease;
• SMNRP for IP: twenty cents per litre (20.00 c/l) decrease; and
• Maximum LPGas Retail Price: Ninety four cents per kilogram (94.00 c/kg) increase.

In another statement, the department extended the comment period for the Request for Information (RFI) on Developing the Biofuels Programme for Blending with Petrol and Diesel published in August 2021.

The RFI seeks to gather information on the status of biofuels projects in South Africa; projected socio-economic benefits that can be derived from the projects and the policy, regulatory and/or financial support required to catalyse a biofuels industry in South Africa.

Following requests for an extension, comment is now invited until 30 September 2021.