(Ecofin Agency) - Chevron SA’s new executive chairperson Shashi Rabbipal who was appointed last week has today commented on Government’s plan to build Africa’s largest refinery saying that, the slowdown in the economy has controlled demands and the country now has abundant gasoline production and for that reason South Africa does not need another oil refinery

“Should another refinery be built, it would mean that the country would have to increase its exports of products and this would mean a change from the current practice of ensuring that supply catered mainly for local demand,” Rabbipal, told Bloomberg revealing that the country’s six refineries, including the one owned by Chevron in Cape Town, processes a collective 703,000 bbls of crude per day, which exceeds demands.

 “Consumers have felt the pinch of the lower economic growth rate, the depreciation of the rand and the hike in petrol prices we saw in previous years, this means they have become more frugal about using petrol. The fuel-consumption trend has certainly flattened,” he said.

PetroSA has made plans to build a refinery at Coega in Eastern Cape region; known as Mthombo with a capacity of 300,000 bbl/d. The company in its annual report recorded a 14.5 billion rand ($1.09 billion) loss for the year, adding that an important action needs to be taken in ensuring that the business survives.

“Should Project Mthombo go ahead, it will have a significant impact on production at other refineries and the local economies they operate in,” he stated.

South Africa’s economy decreased in Q2 and growth forecasts were cut four times this year by Central bank which expects an extension of just 1.5 % for 2015. Also, the rand fell 13 % against the dollar this year.