The Fuels Industry Association of South Africa has responded to recent media reports regarding Jet A-1 supply constraints at the Cape Town International Airport (CTIA).

The association emphasises in a statement that the current Jet A-1 supply constraints at the CTIA are not related to any duties or levies owed to the fiscus, sabotage of security of supply or any attempt to defraud the South African Revenue Services (Sars).

Instead, it informs that the challenge arises from “unrealistic registration requirements that are misaligned with long standing industry practices”, adding that this is an issue that authorities have been aware of for some time.  

“This is an administrative matter, not a fuel shortage problem.”

The association explains that aviation kerosene is chemically similar to unmarked illuminating kerosene, which means it can theoretically be used as a diesel blender. Owing to this similarity, government policy has long recognised the need to prevent diesel adulteration.

To prevent such misuse, and curb diesel adulteration, unmarked illuminating kerosene is taxed at the same rate as diesel, ensuring duty harmonisation between the two products, it outlines.

By contrast, illuminating kerosene intended for household use is marked with an invisible tracer known as Authentix A-1 to prevent its diversion into the diesel pool.

This chemical marker ensures that, if the product is mixed with diesel, its presence can be detected during testing. Marked illuminating kerosene, therefore, does not attract any duties or levies.

Similarly, aviation kerosene used as aircraft fuel does not attract duties or levies. However, Jet A-1 used on domestic flights is subject to value-added tax (VAT), while aviation kerosene for international flights is zero-rated, the association points out.

“These duty structures exist primarily to protect the diesel tax base and maintain environmental and fiscal integrity. They do not imply any non-compliance by the industry or any duties owed. Moreover, members of the association collectively collect and pay over R140-billion yearly to the Sars in Customs and Excise duties, fuel levies, the Road Accident Fund levy and VAT,” the association emphasises.

It posits that a key cause of the current vulnerability is a long-standing regulatory gap within the Customs and Excise Act.

“While rules exist governing the registration and movement of aviation kerosene to and from warehouses, they do not provide clear guidelines or registration process for independent storage operators seeking authorisation to store duty-free aviation kerosene.

“As a result, independent storage providers have struggled to obtain the necessary registration to store aviation kerosene, despite their critical role in the supply chain,” it explains.

The association says this lack of regulatory clarity has two key consequence, mainly, it threatens existing Jet A-1 infrastructure in Cape Town, Durban and East London, and may constrain new investment in additional aviation kerosene storage at key strategic hubs such as CTIA; and it exposes industry operators to avoidable compliance risks, including administrative penalties and potential forfeiture threats, creating uncertainty for companies that provide essential storage capacity for aviation kerosene.

The association is of the view that this situation creates undue risk to the importation and availability of aviation kerosene, as companies may become reluctant to engage in storage or import activities while the registration pathway remains unclear and potentially punitive.

“We reiterate that this is a solvable administrative issue. With urgent, coordinated action by Sars, normal operations can be restored swiftly, protecting South Africa’s aviation connectivity, tourism sector and broader economic activity,” it highlights.