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BUSINESS NEWS
Minister blames industry for fuel crisis
Posted Wed, 14 Dec 2005

Minister of Minerals and Energy Lindiwe Hendricks has blamed the country's fuel shortage on the petroleum industry, and called industry leaders to an emergency meeting on Tuesday night to discuss the crisis.

According to her spokesperson, she will address a press conference on the crisis on Wednesday.

Addressing the National Assembly earlier on Tuesday, Hendricks said: "Everybody knows the industry is to blame in this case. From the government side, everything has been done to prepare us for the start of cleaner fuel."

Meanwhile, BP said fuel supply problems were still being experienced in some parts of the country.

Diesel was being "severely rationed" in the Cape Town area until supply was received from the refinery. A consignment was also expected to arrive by ship this week.

Supply of 95 octane and unleaded petrol in Cape Town had improved, but delivery backlogs were being caused by increased demand.

In Gauteng, there were no immediate shortages of diesel or petrol, but a backlog was causing delivery delays, the company said in a statement.

In the Eastern Cape, East London was experiencing "severe diesel supply problems". The product would be rationed until the situation improved — probably around December 16. Petrol in the city also remained in short supply, particularly the unleaded type.

In Port Elizabeth, unleaded petrol remained in short supply but deliveries were expected overnight, BP said.

The problems arose when refineries restarted after switching over to cleaner fuel technology.

This was aggravated by spiked demand following last week's fuel price cut, and a "run" on service stations following reports of a shortage of fuel at Cape Town International Airport.

Sapa

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