Leaded petrol to be phased out

Diesel and 95 octane petrol users will feel the pinch when new fuel specifications come into operation next year, eliminating leaded petrol from the market.

Diesel users will fork out more for a new, low-sulphur version of the fuel, while motorists insisting on using 95 octane petrol rather than 93 or 91 octane will pay a special levy, says the Department of Minerals and Energy.

Cleaner fuel specifications, effective from 1 January 2006, would remove all leaded petrol from the South African market.

This was in terms of a Cabinet decision made earlier this year, confirming its approval in 2002 of a recommendation to discontinue leaded petrol by 2006, departmental deputy director-general Rod Crompton said in Pretoria.

From 1 January, diesel with 3000 sulphur parts per million (0.3%) would be replaced by a new diesel containing only 500 parts per million (0.05%).

New diesel more expensive

The new type was more expensive, said SA Petroleum Industry Association director Colin McClelland. The difference in price was currently about 15 to 20 cents per litre, and varied depending on international price factors.

As for petrol, motorists can from next year choose between 91, 93 and 95 octane unleaded petrol.

A 95 octane lead replacement petrol (LRP) will also be available for older cars inland, and a 93 octane LRP at the coast. LRP uses octane-boosting additives, typically heavy-metal-based, rather than lead.

Special levy for high octane petrol

Crompton said a special 10 cents per litre would be levied on 95 octane petrol from the beginning of next year, to discourage its use.

The levy could be increased to as much as 50 cents per litre depending on demand, and would be reviewed periodically.

South African producers would not be able to meet demand if every last motorist were to decide to use 95 octane from 1 January, but most refineries have started upgrading projects.

Crompton sought to dispel a widespread belief that petrol of a higher octane improved a car's performance.

"A significant proportion of motorists think octane is the solution to all their problems as far as speed and power is concerned, which of course it isn't," he said.

No change to petrol prices

The specifications would bring no change to petrol prices, as existing pricing regulations would remain, Crompton said.

Consumers wishing to switch to a higher octane of petrol would pay more as the prices varied for different octane grades.

McClelland said the cost of the changes to the petroleum industry had been estimated at between R6-billion and R8-billion at the current rand/dollar exchange rate.

Some of this would be recouped from the higher income from diesel.

Crompton stressed that there were benefits to using the new, costlier diesel. Using a "cleaner" diesel would extend vehicles' service intervals.

Lead-free petrol good for health

The introduction of lead-free petrol and low sulphur diesel was in the interests of better health, a cleaner environment and in line with international trends, said the department's chief director of hydrocarbons, Nhlanhla Gumede.

It has been found that South African children living next to refineries or highways had levels of lead in their bodies 10 times higher than allowed by World Health Organisation guidelines. Lead was toxic to the brain, kidneys, and reproductive- and cardiovascular systems.

Gumede said it did not make economic sense to produce different types of engines for the South African and export car markets.

Lead increases the octane rating of petrol and was perceived to act as a cushion between the valve and cylinder heads of older cars. To this end, anti-valve seat recession additives will be available at petrol stations.
All cars manufactured since 1996 could run on unleaded petrol, which currently accounts for about 30 percent of the fuel market.

There are currently three different octanes of petrol on the market: 93 octane (leaded and unleaded) inland, and 95 octane unleaded and 97 octane leaded at the coast.

Crompton said a database was being developed to inform motorists of the octane grade recommended for their vehicles, and whether they should use LRP.

Regulations to give effect to the specifications are expected to be published by mid-year.