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Petroleum Refining and Distribution

2006 was the sixth consecutive year in which aggregate sales of petroleum products in South Africa have increased, reflecting the increases in motor vehicles registered over the period and the switch from rail to road transport for freight traffic.


Sales of petroleum products exceeded 24 billion litres for the first time, an increase of 21% over the previous 3 years. Diesel sales in 2006 were 8,7 billion litres which are 40% above the 2000 level of 6,2 billion litres, reflecting the massive volumes of road freight haulage of basic commodities such as coal, maize and ores.

The estimated volumes of petroleum products (in litres) used by end-user designation in KwaZulu-Natal is shown in the table below.


As shown in the table the sales of diesel by general dealers and the usage by the road freight industry dominate the usage of diesel in the province. The sales of petrol are highest at retail garages.

Petroleum Manufacture and Distribution

The centre of the KZN petroleum and petrochemical industry is in the Prospecton area where the refineries are located a short distance inland from the Offshore Mooring Buoy that provides the direct pipeline from the deepsea tankers delivering crude oil imports, primarily from the Gulf. Approximately 21 million tons per year are discharged from this facility and pumped ashore as feed stock to the coastal and inland refineries.

Fuel Tanker
Fuel Tanker

Transport of Petroleum products

The main transport of petroleum products in KwaZulu-Natal is done by the pipelines that supply the inland areas of South Africa . Approximately 21 million tons of diesel, petrol and jet fuel are pumped through these pipelines per year. The pipelines have off-take points at Pietermaritzburg, Ladysmith, Newcastle and other points beyond the KZN border en route to Sasolburg. From these centres products are delivered to service stations by smaller road tankers. The distribution of petroleum products throughout South Africa by road was prescribed until 1989 for distances greater than 80 km radius from loading point in terms of the Road Tansportation Act ( No 74 of 1977) in order to retain the commodity on rail. When the exempted areas were increased in size by amendment 2677/8 of the Act, petroleum products were specifically excluded in terms of section 6q (iii).

After urgent applications by the petroleum industry, the restriction was repealed and the industry lost little time in reorganising the depot structures and long-distance transport arrangements.

The current situation is that petroleum companies operate their own long-haul maximum mass combination vehicle fleets from Durban and Ladysmith. These fleets supply directly to filling stations and customers all over the province.

As nearly all petroleum products are distributed by road throughout KZN, it can be assumed that approximately 1.8- 2.0 million tons per annum are being transported on the roads for delivery in KZN. If the long-haul deliveries to inland areas of South Africa, Swaziland and Lesotho are included, the annual tonnage of petroleum products on road is about 5.0 million tons.

The abovementioned tonnage transported by road of 2.0 million tons per year to centres throughout KZN may be higher, as in many cases this tonnage is taken first to depots and agencies, and then reloaded for distribution to service stations.

The oil companies have a general policy of using national routes where possible for their primary distribution. The secondary distribution from depots and agencies is mainly on provincial routes and urban streets.

In the past there were rail services to Cedarville, Vryheid, Pietermaritzburg and Newcastle as well as over- border deliveries to Lesotho (and via contractors to Swaziland), but these have almost ceased.

Apart from local movements, approximately 1.5 million tons of fuel are received on rail at the port of Durban from inland refineries, for export.

The movement of petroleum products from the port of Durban to other SA ports is about 3.0 million tons per annum.

Petroleum rail tankers
Petroleum rail tankers

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