FIASA aims to prevent fuel shortages caused by panic buying

The Fuels Industry Association of South Africa (FIASA) has warned large-scale fuel customers that off-contract fuel purchases are being halted.

FIASA CEO Avhapfani Tshifularo said suppliers are capping fuel sales strictly to pre-agreed volumes.

He said that the move is aimed at preventing fuel shortages caused by panic buying.

Tshifularo added that while there is no industry-wide agreement on how to limit fuel supply, individual suppliers will use their own discretion.

"That's precisely what the suppliers are trying to manage because the moment people [panic], they want to buy more than what they are contracted to. You are going to create an artificial shortage in the market."

Tshifularo said while fuel prices are increasing, a fuel shortage shouldn't be a concern for the country.

"What we can assure the public and the motorists is that there is no shortage of firming fuel in the country right now. And if there is any change to that, I mean, position, I'm sure government, together with the industry, they will take the country into confidence and communicate."