SARS sets the record straight on airport fuel crisis in South Africa

The South African Revenue Service (SARS) has clarified that jet fuel shortages experienced at some of the country’s biggest airports are not due to a licensing crisis at the agency.

Instead, the taxman explained that only three entities applied for the appropriate licences to store fuel, and said a lack of compliance at some entities has led to shortages.

Industry bodies have attributed these shortages to regulatory problems created by the government’s desire to crack down on illicit fuel, which has made it more difficult for legitimate stakeholders to import and store fuel.

This comes after media reports revealed that East London Airport was facing a jet fuel shortage, with only one day’s supply remaining.

These reports, in part, attributed this problem to a “licensing crisis” at SARS, saying the taxman’s review of jet fuel storage licensing has created delays and severe bottlenecks in the fuel supply chain.

The Fuels Industry Association of South Africa (FIASA) also explained in a press release that this situation arose due to regulatory challenges, specifically SARS’ review of the licensing status of jet fuel storage facilities in Durban and East London.

“In addition, delays in the finalisation of customs and excise licences for both facilities have created significant bottlenecks, halting and disrupting the supply of aviation fuel to affected airports,” FIASA said.

However, on Sunday, 29 November, SARS clarified in a press release that “there is no licensing crisis at SARS”.

Rather, the problem stems from the fact that South Africa has singifcantly increased its imports of aviation fuel over the past few years as local manufacturing of the recourse has declined.

This has given rise to a regulatory crackdown and strict licensing requirements to import and store fuel, as the government wants to prevent illicit products from entering the market.

FIASA previously explained that aviation kerosene is chemically similar to unmarked illuminating kerosene. This means aviation kerosene can theoretically be used as a diesel blender.

“Because of this similarity, government policy has long recognised the need to prevent diesel adulteration,” the association explained.

Therefore, in an effort to prevent illicit fuel flooding into the country or getting into the hands of illegitimate players, legitimate stakeholders must apply and meet the requirements for a licence from SARS to store aviation fuel.

However, this licensing requirement has given rise to significant shortages at some of the country’s major airports.

SARS cracks down

In its press statement, SARS explained that, in an effort to prevent shortages, it granted special permission for the importation of aviation and illuminating kerosene from 21 October 2024 until 20 October 2025.

“The special permission was granted to address the shift in the fuel industry, in which the country has now become an importer of aviation and illuminating kerosene, as local manufacturing has declined significantly,” the taxman explained.

However, after this special permission period and nearly one year later, SARS said only three entities have applied for fuel storage licensing. 

In mid-2025, the permission was further extended to ensure the security of supply is not interrupted. “Again, only the three original licensees renewed their licenses,” the taxman said.

SARS explained that while it is important to ensure South Africa has adequate fuel supply, it has a legal duty to address non-compliance in the industry.

This is why, in early November 2025, SARS stopped imports into unlicensed facilities. As per SARS’ requirements, imported jet fuel must be stored in licenced special storage facilities.

The taxman explained that a facility in East London had applied for a license to import aviation and illuminating kerosene but had not yet delicensed its previous license for the same facility, as it is legally required to do. 

Therefore, SARS said it is currently assisting this entity to expedite the process. 

“SARS is enjoined by law to stamp out non-compliance with the regulations governing the storage and handling of fuel, and to ensure the strict observance of licensing requirements without undermining the security of the supply of aviation and illuminating kerosene,” the taxman said. 

“While the statement attributed to the industry association supports SARS’ mandate, their remarks suggest an expectation that compliance should be secondary to the security of fuel supply.”

SARS said compliance with customs and excise regulations in those operations is critical to ensure lawful operation, and it will continue to operate with a strict zero-tolerance policy towards non-compliance.

“I encourage all stakeholders in the fuel industry to work closely with SARS to obviate any unnecessary challenges and to ensure that any movement of fuel is dealt with in line with all relevant regulations,” SARS Commissioner Edward Kieswetter said.