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South Africa's oil companies raised their wage increase offer to 8-10 percent on Monday afternoon in a bid to end the national fuel strike which has led to shortages and had an impact on the availability of bunker fuel at the country's main ports.

Employees from the Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (CEPPWAWU) downed tools on Monday 11th July demanding better wages (a minimum salary of 6,000 rand (US$900) per month) and the scrapping of labour brokers.

Unions and employers were locked in talks yesterday as negotiations between both parties continued. Prior to yesterday's improved offer, employers had offered a 7 percent raise compared with the 11-13 percent sought by the unions.

Commenting on the new offer, Dirk Hermann, secretary general of trade union Solidarity, said: "We are not yet at the point where I can say we are happy with the offer, but this brings the negotiations to a new level."

Unions will need to consult their members regarding the offer and the strike is expected to continue today. “Ending a strike is not as easy as pressing a button,” Hermann said.

“We hope that we can finalise the negotiations,” Hermann added.

Since the strike was announced last week, the availability of intermediate fuel oil (IFO) and marine gasoil (MGO) has been affected at the country's principal bunker ports: Durban, Cape Town and Richards Bay.

Last week production was cut at Durban's second-largest refinery - the 125,000 barrels-per-day Petronas Durban Refinery - operated by refiner and bunker supplier Engen Petroleum Ltd. Malaysia's state-owned oil company, Petroliam Nasional Bhd. (Petronas) has an 80 percent stake in the refinery, which is one of the principal supply sources for the South African bunker market.

Deliveries of 180-centistoke (cst) at Cape Town are currently on a 'best endeavour' basis and suppliers were yesterday not quoting MGO until further notice.