{"id":5694,"date":"2026-04-21T13:55:45","date_gmt":"2026-04-21T11:55:45","guid":{"rendered":"https:\/\/mypr.co.za\/?p=181697"},"modified":"2026-04-21T13:55:45","modified_gmt":"2026-04-21T11:55:45","slug":"fuel-stockpiling","status":"publish","type":"post","link":"https:\/\/mypr.co.za\/mail\/fuel-stockpiling\/","title":{"rendered":"Fuel Stockpiling"},"content":{"rendered":"
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Fuel Stockpiling \u2013 The Hidden Risk South Africans Are Overlooking<\/em><\/p>\n

As uncertainty in the Middle East continues, South Africa is facing soaring fuel costs and potential supply disruptions. In response, businesses, farms and even households are increasingly storing petrol and diesel on-site in larger quantities than usual. This is happening despite the country\u2019s fuel supply remaining fundamentally stable for now. How this plays out over the coming weeks and months depends heavily on what happens in the middle east and the impact on global logistics and oil supply.<\/p>\n

While stockpiling may seem like a practical short-term solution to navigate the uncertainty of fuel supply and pricing, it introduces a range of unintended consequences. Clayton Ellary, Executive Head: Mid-Market Clients & Broking at Aon South Africa, cautions that increased fuel storage can significantly alter both risk exposure and insurance implications.<\/p>\n

\u201cThe moment materially larger volumes of fuel are stored on site, the risk exposure fundamentally changes. Fire load increases dramatically. Vapour and handling risks increase. The potential for injury, third-party harm and environmental damage increases. Critically, the insurance assumptions that were valid before the stockpiling will no longer apply,\u201d Ellary explains.<\/p>\n

A Highly Regulated Risk<\/strong>
Fuel is not ordinary stock. It is a hazardous, highly flammable substance that requires strict control, appropriate containment and careful handling. Municipal petroleum by-laws typically require registration or approval once flammable liquids exceed certain thresholds and may mandate purpose-built storage facilities beyond specific volumes.<\/p>\n

In South Africa, fuel storage is governed by a robust regulatory framework. This includes municipal fire safety by-laws, the Occupational Health and Safety Act (OHSA) 85 of 1993, the National Environmental Management Act (NEMA), and Hazardous Chemical Agents Regulations. In addition, the South African Bureau of Standards (SABS) sets out technical requirements through various SANS codes covering storage, handling, transportation and building compliance.<\/p>\n

\u201cThis means the issue is not simply whether fuel is stored on site, but whether it is stored lawfully, safely and in compliance with all applicable requirements,\u201d Ellary notes. \u201cFrom an insurance perspective, undeclared or non-compliant storage can have serious repercussions.\u201d<\/p>\n

The Insurance Implications of Non-Disclosure<\/strong>
Insurance is structured around disclosed risk. When a property that is typically used for light commercial activity or general warehousing begins storing significantly larger quantities of fuel, this may constitute a material change in risk.<\/p>\n

Insurers are likely to ask three key questions:<\/strong><\/p>\n