Application to liquidate PetroSA brings uncertainty

Update

GARDEN ROUTE NEWS - Added to the economic pressure predicted as a result of the fuel price increases is the escalating uncertainty surrounding PetroSA's financial position and the liquidation application brought by Nako Energy (Pty) Ltd.

amaBhungane Investigative Centre for Journalism has conducted years-long investigations into PetroSA, and its most recent investigation, published on 17 September, brought Nako's application to light.

This investigative piece says PetroSA owed the junior fuel trader R605m for a 2024 cargo of fuel that the company had bought and struggled to sell while Nako owed PetroSA R832m for a cargo of diesel it had bought and never paid for.

amaBhungane's article says the two companies met in May 2025 and struck a deal that PetroSA would buy another 11 consignments of cargo of unleaded petrol from Nako and receive a discount of 45c per litre.

Once PetroSA had sold 505 million litres of fuel, it would be R227m richer, and Nako's debt would be "eliminated".

However, the deal did not pan out as PetroSA had hoped, and, according to amaBhugane, once Nako had PetroSA's signature on an acknowledgement of debt, this document was ceded to Nako's creditors, whose attorneys then came calling, demanding payments on the same shipment of fuel.

PetroSA's Mossel Bay Gas-to-Liquids Refinery Site. Photo: Chelsea Pieterse

In response to media reports about the application, the Board of PetroSA released a statement on 17 September confirming the application and that it would oppose it.

"The company has a substantive defence to the claim and will place its position fully before the court in accordance with the legal process," said the statement.

"The board wishes to assure stakeholders, employees, business partners and the general public that PetroSA does not face an imminent threat of liquidation. The company remains operational and will fully defend its rights and interests in the proceedings.

"As the matter is before the courts, PetroSA will respect the sub judice principle and will not comment publicly on the merits of the dispute while the legal process is under way."

PetroSA added that it is also aware of "social media content circulating in relation to historical allegations concerning the company".

"These matters are not new and continue to be addressed through the appropriate governance and organisational processes. The board remains committed to responsible governance, transparency and
accountability, while ensuring that PetroSA continues to focus on its operational mandate and long-term sustainability."

Dr Dennis Farrell, managing advisor of the Business Café in George, says that recent investigative reporting (amaBhungane) highlights PetroSA's contested financial exposure, including a disputed R1.4b liability linked to fuel cargo transactions, more than R700m owed to fuel trader Addax, and R4b in unpaid taxes to Sars.

"If these national liabilities ultimately fall to the state, the combined R6.1b burden would be absorbed by South Africa's approximately 7.1 million taxpayers, equating to an illustrative average liability of approximately R860 per taxpayer (recognising that actual tax incidence falls unevenly across income brackets)," says Farrell.

"This hidden fiscal pressure compounds rising fuel costs, food inflation and fragile municipal finances across the Garden Route."

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