There is no legal basis for requiring oil companies to compensate consumers for the crippling fuel shortages in December last year, the government-appointed inquiry into the shortages has concluded.

The report of the inquiry, released on Wednesday, said there was no evidence that the allowance for stock holdings built into the basic fuel price could be translated into a commitment by the oil companies to hold these stocks.

It said however that individual customers who believed they had suffered loss due to breach of contract by their suppliers were at liberty to submit claims for compensation.

The report said the December fuel shortages resulted from the "cumulative impact of an unfortunate set of circumstances".

It said there were serious underlying issues in the oil industry which, if not urgently addressed, were likely to lead to further serious disruptions, both in the short and longer term.

Sapa

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