- BIASA says new offshore bunkering rules ignore industry feedback, especially limits on operators and STS tankers.
- The association argues that regulators are overly focused on Algoa Bay while overlooking broader port-related environmental risks.
- Non-compliance carries penalties of up to Rand 2 million ($113,000) and possible five-year prison terms.
- Market disruptions in Algoa Bay have shifted bunker demand to Durban and other regional ports, with suppliers relocating operations.
South Africa’s bunker industry has raised concerns over newly implemented environmental rules governing offshore ship-to-ship transfers. Industry representatives warn that the regulations, particularly around Algoa Bay, could restrict refueling operations, as reported by S&P Global.
Offshore Bunkering Rules and Market Impact
The Bunker Industry Association of South Africa (BIASA) expressed concern that the final offshore bunkering regulations do not reflect key recommendations made during the consultation process. In particular, the association highlighted restrictions on the number of operators and ship-to-ship tankers, which it believes will limit competition. BIASA also noted that the government’s focus on offshore activities in Algoa Bay overlooks wider environmental challenges linked to the 1,500 vessels that call annually at the Ports of Elizabeth and Ngqura, including issues such as underwater noise.
Under the new framework, the Ministry of Forestry, Fisheries and the Environment has introduced penalties of up to Rand 2 million ($113,000) and possible prison sentences of up to five years for non-compliance. BIASA said it is working with stakeholders and legal advisors to determine next steps, emphasizing the need for regulations that support fair competition and open markets.
Algoa Bay, once the country’s largest bunkering hub, has already faced disruptions. A tax dispute halted refueling operations from September 2023 to February 2025, forcing major suppliers such as BP, TFG Marine and Mercuria to suspend activities. Some companies redirected operations to Mauritius and other East African ports, while AMSOL returned earlier this year with limited services.
Other ports, including Durban, have seen increased bunker demand, supported both by the irregular supply in Algoa Bay and by ship diversions from the Red Sea due to security concerns since late 2023. According to Platts, part of S&P Global Commodity Insights, delivered bunker prices on Aug. 18 were assessed at $615/mt for 0.5%-sulfur marine fuel oil and $1,110/mt for 0.1% sulfur marine gasoil at the Port of Elizabeth.
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Source: S&P Global
