As BP exits its aviation activities in South Africa, Shell has affirmed its commitment to continue providing aviation fuel in the country. Shell Downstream South Africa confirmed its plans to continue its aviation fuel operations at airports in South Africa, stating that there is no change to its local operating model. This comes after BP announced its decision to exit all its aviation activities at South African airports, citing Air BP’s current global business strategy as the reason for the decision.
According the new, the decision by BP to exit the aviation sector in South Africa has led to concerns regarding the future of the country’s aviation market. However, Shell’s announcement provides reassurance to the market, as the company has stated its commitment to supply aviation fuel to customers in South Africa.
When asked about BP’s decision to withdraw from the aviation sector in South Africa, the company responded that it was due to Air BP’s current global business strategy. The exit of BP from the aviation sector in South Africa comes after two Russian planes were unable to get fuel from large international fuel suppliers at OR Tambo International Airport in Johannesburg and Cape Town International Airport due to sanctions imposed on Russia by their countries of origin.
Despite criticism from the international community, South Africa hosted naval exercises with Russia and China off the KwaZulu-Natal coast last month. South Africa was also one of 35 countries that abstained in a United Nations General Assembly vote which condemned Russia’s annexation of Ukrainian territories.
Airports Company South Africa (ACSA) has also announced its plans to adopt a new refuelling plan in response to the situation where a sanctioned friend of the South African government needs servicing and refuelling. The new process will see oil companies supply the fuel, while an independent operator manages the facilities on ACSA’s behalf. The oil companies will have no say in the refuelling of planes.
PetroSA, a state-owned company, has indicated that it is entering the aviation sector, starting with taking over from BP at the East London and George airports. PetroSA will buy jet fuel from existing traders in South Africa until there is enough demand to import a vessel of jet fuel – most likely from the Middle East.
