FUEL IMPORT CONTROL ORDER RELAXED

MBABANE – Relief for businesses and motorists.

Government has relaxed restrictions on the importation of fuel in large quantities from Mozambique. The restrictions were meant to boost SACU coffers through encouraging oil companies to import from South Africa. The latter is a member of the Southern African Customs Union (SACU) alongside Eswatini, Botswana, Lesotho and Namibia. SACU’s aim is to maintain the free interchange of goods between member countries. It provides for a common external tariff and a common excise tariff to this common customs area. All customs and excise collected in the common customs area are paid into South Africa’s National Revenue Fund.

revenue

The revenue is shared among members according to a revenue-sharing formula, as described in the agreement. South Africa is the custodian of this pool. As fuel had become a scarce commodity in the country since the violent protests witnessed in the past two weeks, yesterday government decided to invoke the clause in the Import Control Order on the fuel quota from Mozambique. The violate situation in South Africa over the incarceration of former President Jacob Zuma has made things worse, as suppliers are grounded. Dorcas Dlamini, who is Principal Secretary in the Ministry of Natural Resources and Energy, also confirmed the latest developments, saying the import control order was allowing for special permits for the importation of the commodity from non-security countries in cases of fuel disruptions in SACU member States.

“The Ministry of Finance has invoked that clause and is currently issuing special permits to oil companies to import from Mozambique. Large quantities will be imported from Mozambique to address the situation,” assured Dlamini. Business Eswatini CEO Nathi Dlamini said as of yesterday, at least 50 trucks, some of which had been diverted from South Africa, were making way into the Mozambique Port to bring fuel into the country. Dlamini thanked the ministries of natural resources and energy as well as that of finance for removing the ‘artificial hurdles’ from the Mozambique supply chain.

quota

Meanwhile, the quota was based on month-on-month, with the oil companies made to apply each month. One of the fuel importers from Mozambique, Galp Energia Eswatini, also confirmed seeking the special permit. Sales and Marketing Director Fannie Mthethwa said they needed supply to last at least two weeks with the hope that the situation in Mozambique would eventually normalise. Reports suggest the Durban refinery loading points have all shut down for safety reasons. It is said to be unsafe to attempt loading inland due to the highly flammable nature of the product and the possible devastation that can be caused.

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