South Africans have been hit by another petrol price increase. From Wednesday, September 2, Petrol (93 and 95 ULP & LRP) will icrease of R1.34 per litre.
Meanwhile the Department of Petroleum and Mineral Resources also announced ;
- Diesel (0.05% sulphur): Increase of R2.93 per litre.
- Diesel (0.005% sulphur): Increase of R3.14 / R3.15 per litre.
- Illuminating Paraffin (wholesale): Increase of R2.13 per litre.
As South Africans face this new round of fuel price increases, households and businesses may be considering storing additional petrol, diesel and other flammable liquids to protect themselves against rising costs and possible supply disruptions.
However, while building up fuel reserves may appear to be a practical precaution, incorrect storage can create significant fire, explosion, environmental and insurance risks.
Ryno de Kock, Head of Distribution at PSG Insure, said fuel stockpiling needs to be approached with caution, particularly as households and businesses respond to ongoing volatility in global oil markets.
“Many homeowners may not realise that fuel storage at residential properties is subject to specific guidelines. These requirements are designed to reduce the risk of accidental fires, spills and other incidents that could endanger people and property,” said de Kock.
According to the South African Insurance Association, residential properties should store no more than 25 litres of fuel or other flammable liquids.
Fuel should also be kept in secure, well ventilated containers and stored in a way that reduces the risk of ignition, leakage and contamination.
De Kock said homeowners also needed to consider municipal by laws, occupational health and safety requirements and relevant building regulations when storing fuel.
“While these measures may seem straightforward, overlooking even a small detail can substantially increase both safety and insurance related risks,” he said.
Businesses face different fuel storage requirements
Commercial properties generally face different obligations from residential properties, with requirements determined by factors including an insurer’s underwriting criteria, the nature of the business and applicable regulations.
“For businesses, fuel storage requirements are generally determined by an insurer's underwriting criteria, the nature of the operations and applicable regulatory requirements,” said de Kock.
“Unlike residential properties, there are usually no fixed limits on the quantity of fuel that may be stored, provided the necessary safeguards and compliance measures are in place.”
Businesses that store fuel or other flammable liquids should ensure their storage facilities are appropriately designed, maintained and operated.
This includes using secure operational tanks or containers, implementing measures to prevent fires and spills, separating fuel storage from other equipment where necessary and complying with relevant health, safety and building standards.
De Kock also warned that requirements can differ between municipalities.
“Fuel storage requirements can vary depending on location, as municipal by laws differ across jurisdictions. Businesses should therefore confirm the specific requirements that apply to their operations and premises,” he said.
Insurance cover could also be affected
Beyond the immediate safety risks, homeowners and businesses need to consider the potential insurance implications of storing larger quantities of fuel.
De Kock said non compliance with applicable regulations and insurer requirements could affect the assessment of an insurance claim following an incident.
With fuel inherently hazardous, storing excessive quantities or using unsuitable containers could increase the likelihood of fires, explosions, spillages and environmental damage.
“Before increasing fuel storage volumes, it is best to speak to your insurance adviser to confirm the requirements applicable to your policy and insurer,” said de Kock.
“A proactive conversation today could help prevent significant financial losses tomorrow while providing that, should an incident occur, you have the protection and support you expect from your insurance cover,” de Kock concluded.
Rising energy costs add to household pressure
The warning comes as South African households face mounting pressure from higher energy costs.
Rising electricity tariffs, higher fuel prices and increases in illuminating paraffin are adding to already stretched household budgets, with the impact particularly severe for lower income families.
For many households that cannot afford electricity, paraffin remains an important source of energy for cooking, heating water and lighting homes. Rising fuel prices are also placing additional pressure on transport and household expenses.
Neil Roets, CEO of Debt Rescue, said the energy affordability crisis was unfolding alongside wider economic pressures.
“This crisis is unfolding against the backdrop of high unemployment, wages and salaries that are not keeping up with inflation, escalating food and petrol costs and soaring paraffin prices, placing unbearable financial pressure on already vulnerable households,” Roets said.
“For these families, paraffin is not an alternative option, it is a fundamental for survival. When the price of paraffin escalates to a point, as it has, where it becomes unaffordable, we are looking at a national emergency. It goes without saying that these households have long since not been able to afford electricity.”
As consumers and businesses face the higher fuel costs, building reserves may offer a sense of security. However, PSG Insure’s warning highlights that fuel stockpiling also comes with responsibilities.
ashley.lechman@nationalmg.co.za