South Africa’s High Marine Fuel Prices Depriving Offshore Bunkering Industry

High domestic fuel prices are undermining South Africa’s appeal as a competitive offshore bunkering destination, members of the Port Liaison Forum (PLF) warned during their latest meeting.

International shipping companies continue to view South African marine fuel prices as uncompetitive compared to alternative global bunkering hubs. Industry stakeholders noted that vessels transiting around the Cape of Good Hope will likely continue fueling elsewhere unless local pricing becomes significantly more competitive. The country’s high fuel costs stem primarily from a reliance on imported fuel following the closure of multiple domestic refineries.

In tandem with pricing pressures, lingering regulatory friction with the South African Revenue Service (SARS) remains a primary barrier deterring prospective bunker suppliers and foreign shipping lines. Members emphasised that addressing regulatory inefficiencies is a necessary step to restoring market confidence, encouraging new supplier entry, and lowering costs through increased competition.

While SARS controls were originally implemented to prevent foreign operators from exploiting South African waters without contributing locally, stakeholders stressed that future policy must balance oversight with commercial growth. Industry representatives agreed that regulatory reforms should explicitly promote the employment of South African seafarers to ensure increased bunkering activity delivers tangible domestic economic value.

Resolving these growth constraints will require a coordinated, inter-agency strategy. PLF members called for formal collaboration between SARS, the Department of Transport, and private maritime stakeholders to establish clear regulatory frameworks that stimulate bunker activity while protecting national economic interests.