Shortage sees LPG prices soar

Johannesburg - A countrywide shortage of liquid petroleum gas (LPG) has become so bad that some distributors from Gauteng have been forced to order gas from the Western Cape, which already has dwindling supplies.

LPG gas is commonly used in households for cooking and heating.

But erratic loadshedding and cold weather has seen more consumers heading to stores and petrol stations to stock up on it and this increase in demand has exacerbated already low supplies.

Some industry players say the Western Cape has been hardest hit by the shortage.

George Tatham, managing director of one of Cape Town’s major suppliers, Kaya Gas, said there had been an irregular supply of LPG gas in the city for the past four months.

He attributed the scarcity to the PetroSA refinery at Mossel Bay and the Chevron Cape Town refinery not producing gas at full capacity.

Tatham said since the start of this year Kaya Gas had shipped in gas four times from overseas suppliers to try to meet demand.

Another shipment was expected to arrive on July 22.

Some suppliers were struggling to juggle gas orders.

On its Facebook page, Eddlesgas, a supplier of LGP gas in Kirstenhof, said the shortage was affecting its business.

“Unfortunately, due to the ongoing gas shortages we have had to temporarily disable ordering of gas from the website.”

This week an independent gas distributor from Joburg, Mac Haldane, said he was so desperate for supplies he had ordered gas from the Western Cape.

“This is undoubtedly the worst shortage in seven years. Right now we are at a standstill. Our cans are empty. We can’t supply any gas to our customers,” Haldane, who owns Diesel Drive and Oils, said.

Before the shortage, he had been quoted R34 000 to transport 500 tons of gas between the provinces, but he was now being quoted R70 000 to transport it.

A 9kg cylinder costs between R190 and R220 at some stores and service stations.

But some consumers have claimed to pay as much as R300 for a cylinder.

“Everyone is taking advantage of the situation,” Haldane said.

“Yes, I can obtain gas, but unfortunately the end user is being punished. Gas prices are going up. Restaurants owners are stressed. Everyone is stressed. We are in a critical situation.”

Haldane said he sent trucks to Mossel Bay this week and expected the gas to arrive on Tuesday or Wednesday.

“The government is constantly encouraging the public to use gas as it is cheaper, but it is not coming to the party. Why is so much gas going out of South Africa to countries like Mozambique instead of addressing the shortage here? We need quick intervention,” he said.

Afrox South Africa spokesman Simon Miller said the company had imported 3 000 tons of gas and plans were under way to bring in 3 000 tons more in the next three months.

Asked if the dearth of gas was severe, Miller said: “I wouldn’t say at this stage we have reached crisis point because we have had warm weather in Joburg.

“But I believe when it gets cold we could definitely face a crisis,” he said.

Service stations across Joburg are also buckling under the pressure.

Management at an Engen garage in Brackenview said the situation was “desperate”.

Its regular supply was between 300 and 400 gas cylinders a week.

Weekend Argus