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The automotive industry welcomes soonest introduction of next generation clean petrol and diesel, effective September 2023

The automotive industry welcomes soonest introduction of next generation clean petrol and diesel, effective September 2023

naamsa | The Automotive Business Council welcomes and commends the Department of Energy and Mineral Resources (DMRE) for the publication gazette on the regulation for Petroleum Products Specification and Standards for Implementation gazette (Government Notice R784), published on August 31st 2021, for the introduction of the next phase of Clean Fuels Program (CF2) in South African, effective by September 2023.

http://www.gpwonline.co.za/Gazettes/Gazettes/45068_31-08_MinResourcesEnergy.pdf

The introduction of low sulphur petrol and diesel (sub 10ppm) and other revised fuel parameters nationally is progressive in line with the climate change considerations and will enable vehicle manufacturers to market the latest technology fuel-efficient and low emission new motor vehicles in South Africa. Once the fuel regulations are implemented, a significant reduction in vehicle emissions in respect of the entire vehicle population can be expected. The new measures to improve enforcement relating to mandatory recordkeeping of fuel purchases by retailers are also essential for combating the increasing import and sale of grossly sub specification fuels currently being seen in the South African market. Furthermore, the progressive move to cleaner fuels support the South African government commitment to the 26th Conference of Parties United Nations Framework Convention on Climate Change (COP 26), where the SA government secured R131 billion to steer the country towards green energy.

The automotive industry contributes 4,9% to the country's GDP, accounts for 30,1% of the country's manufacturing output and employs over 468,502 across the value chain. We are the country's 5th largest exporting sector out of all 104 industries and accounts for 13,9% of total domestic exports. In line with the industry growth targets set in the South African Automotive Masterplan (SAAM) 2035, the latest developments regarding the DMRE Regulation for Petroleum Products Specification and Standards gazette will further facilitate the South African automotive Industry's integration into the global market. In addition, the fuel regulations will also contribute positively to the realisation of governments' objective to grow the country’s industrialisation capacity through the Automotive industry, which in turn will support the development of the domestic supplier Industry localisation aspirations and, more importantly, foster employment creation.

 

 

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