The Fuels Industry Association of South Africa (the Association) notes recent media reports regarding Jet A-1 supply constraints at Cape Town International Airport (CTIA). It wishes to clarify several important points to ensure accurate public understanding of the situation.
Aviation kerosene is chemically similar to unmarked illuminating kerosene, which means it can theoretically be used as a diesel blender. Because of this similarity, government policy has long recognised the need to prevent diesel adulteration — a practice that defrauds the fiscus, undermines compliant operators, damages engines, and distorts the fuel market.
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. By contrast, illuminating kerosene intended for household use is marked with an invisible tracer, 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.
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 annually to the South African Revenue Service (SARS) in Customs and Excise duties, fuel levies, the Road Accident Fund levy and VAT.
It is important to emphasise that the current Jet A-1 supply constraints at CTIA are not related to any duties or levies owed to the fiscus, sabotage of security of supply, or any attempt to defraud SARS. The challenge arises instead from unrealistic registration requirements that are misaligned with long-standing industry practices – an issue known to the authorities for some time. This is an administrative matter, not a fuel shortage problem.
At the heart of the present 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 a 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.
This lack of regulatory clarity has two key consequences:
- 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.
- 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.
In the Association’s view, 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. At the same time, 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.
The Association remains fully committed to working with all stakeholders to maintain a continuous and secure aviation kerosene supply to all the airports in the country. It will continue to provide updates as information becomes available.
