The delay in the introduction of clean fuels in South Africa will halt the flow of new vehicle technology to the country, warns the National Association of Automobile Manufacturers of South Africa (Naamsa).

“With the widespread introduction of new technology, including new four-way catalytic-converter-equipped vehicles in Europe during 2018, we will now find that, for the first time since the 1996 introduction of unleaded petrol in South Africa, many regular petrol engine motor cars available to the general public in Europe, will not . . . be marketed in South Africa,” advises Naamsa fuel and emissions working group chairperson Stuart Rayner.

“This will effectively deny the motoring public access to the latest low-emission vehicle technology.”

Moreover, having to produce export vehicles in South Africa for high-technology export markets, as well as vehicles for the local low-technology market, is inefficient and impacts negatively on the industry’s global competitiveness.

Naamsa adds that a plateau has been reached in South Africa in terms of average vehicle fuel economy, as measured in terms of carbon dioxide (CO2) emissions.

The association notes that automotive companies believe that any further progress is unlikely without the widespread introduction of the latest engine technology, which, in turn, requires new enabling, clean fuels.

Despite the absence of clean fuels flowing from South African refineries, new car and bakkie owners in the domestic market were, from 2010, charged a carbon tax for each gram per kilometre of CO2 emissions above a threshold of 120 g/km.

Naamsa says it is “illogical” that vehicle manufacturers and importers should continue to be penalised for not introducing the latest engine technology vehicles when many such vehicles will not be able to operate on South African fuel, or while those models that are introduced may require expensive reverse engineering to use older, less efficient engines.

“Product restrictions are already being applied to local companies by their foreign principals, particularly due to the lack of availability of clean fuels. “This calls into question the rationale for continued application of CO2 taxes on new motor vehicles in South Africa, and reinforces the urgent need for the introduction of clean fuels,” says Naamsa.

Government announced a R40-billion allocation in the 2013/14 budget for the upgrading of South Africa oil refineries to produce Euro V fuels by this year.

The Department of Energy subsequently decided to re-evaluate the clean fuels initiative, with little progress reported since.

South Africa is about 15 years behind the rest of the world in terms of fuel standards and quality, says Naamsa.

“The introduction of clean fuels in South Africa is essential from an environmental/urban air quality and human health perspective.

“It is also essential to enable [vehicle manufacturers] to supply the market with high-technology, highly fuel-efficient and low-emission new motor vehicles.”