Fuel suppliers starting to feel the pinch

2012-10-02 13:08

South Africa’s fuel suppliers are starting to feel the pinch as a strike by more than 20 000 truck drivers enters its second week, with deliveries to pumps delayed and stations running out of certain types of fuel, an industry body has said.

The walkout by drivers asking for higher wages has affected 40% of fuel tanker trucks, it said, adding to pressure on Africa’s biggest economy from wildcat strikes by 75 000 miners in the platinum and gold sectors.

“We are operating under difficult challenges. We are seeing more and more delays of fuel trucks into service stations,” said Avhapfani Tshifularo, head of the SA Petroleum Industry Association.

“More service stations will start running short of certain grades of fuel if it continues into next week,” he added.

The fuel suppliers in South Africa include Shell, BP, Total, Chevron, local petrochemicals group Sasol and Engen, which is majority-owned by Malaysian state oil group Petronas.

Hundreds of striking truck drivers marched in the centre of Johannesburg today, chanting and waving cardboard placards, demanding a 12% rise in wages.

Employers have so far offered an increase of 8.5%.

“We drive big trucks but we don’t even make R2 000 a week. I only make that if I work overtime,” said David Mohlahlo, one of the protesters.

Talks between unions and the employers were expected to resume tomorrow.

The strike by truckers has mainly hit transport and logistics companies.

“We are severely affected,” said Marius Swanepoel, chief executive of logistics at Imperial Holding, whose fleet of 5 000 trucks hauls consumer goods and fuel.

“In some of our depots, between 50% and 80% of our trucks are not on the road,” he added.

Rival Super Group is losing up to R6 million a week, chief executive Peter Mountford told Reuters.

“There are 3 000 trucks that are meant to be on the road but are not,” he said.

Other affected companies include Grindrod, Barloworld and Bidvest. Mining and manufacturing groups said they could suffer if a prolonged strike cut deliveries of diesel used to run heavy machinery.

A long strike could also affect electricity supply in South Africa, which relies on coal for 85% of its power.

Almost a third of coal is moved by trucks, power utility Eskom said.

“There are five stations which are at risk of falling below their minimum days’ stock levels if the strike persists,” Eskom said.

An interruption in coal supplies would further strain Eskom, which is already struggling to meet rising demand for electricity and is hoping to avoid rolling blackouts that brought South Africa’s industry to its knees in early 2008.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.