New rules requiring oil refineries in SA to cut diesel sulphur levels to 10 parts per million had been due to come into effect in 2017 but have been postponed indefinitely due to a disagreement between the government and SAPIA, which represents oil majors, over who will cover the cost.
SAPIA has estimated that it would cost $3.9bn for all refineries in the country to upgrade to meet the new rules. “In the current worldwide refining environment ... margins are hovering around zero and a large overhang of ... product is presently depressing prices,” Avhapfani Tshifularo, executive director of SAPIA, told Reuters in response to e-mailed questions.Pump prices are government-regulated in SA and Tshifularo said talks with the government on how companies will recover the cost of investment in cleaner fuel are deadlocked.
The pandemic, lower oil demand and pressure from investors to cut carbon emissions have forced oil majors to close some refineries around the world that were operating on very slim margins.In 2006 SA, a net importer of petroleum products, banned lead from petrol and limited sulphur dioxide levels in diesel to 500 ppm, a sixfold decrease. Some refiners have reduced levels to 50 ppm.
Still, according to the International Council on Clean Transportation, the health impact of exhaust emissions in SA has worsened in recent years. In 2015, there were 1,420 premature deaths linked to vehicle exhausts, a 6.5% uptick from 2010, a report by the council in 2019 showed.
Cant afford to close and import only, our government must never allow refernery closures. This pendemic should have taught us 1 or 2 things that we can never 100% dependent on imports because when there are wars etc country wont function. Other countries are building refineries
Electric cars will solve this problem. Solar powered.
This is too much, subsidiaries please.
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