Plans are under consideration to revive the Sapref refinery, which was acquired by the Central Energy Fund, as part of efforts to rebuild lost capacity. South Africa has lost nearly half of its refining capability in recent years — estimated at around 300,000 barrels per day — increasing reliance on imports.
Image: Doctor Ngcobo/Independent Newspapers
The government has signalled that reopening the country’s closed oil refineries is not a viable short-term solution to rising fuel prices and supply concerns, despite growing public debate over energy security.
Officials from the Department of Mineral and Petroleum Resources (DMPR) and representatives from the Fuels Industry Association of SA (Fiasa) stressed during a briefing on Wednesday that the country’s exposure to global oil market volatility would persist even if refineries were brought back online.
They explained that most of South Africa’s shuttered facilities were crude oil refineries, meaning they relied on imported crude feedstock. As a result, reopening them would not shield the country from geopolitical disruptions such as the ongoing tensions in the Middle East, which have driven up international oil prices and, in turn, local fuel costs.
“Even if those refineries were operational today, they would still be dependent on imported crude oil and subject to the same global price shocks,” said Fiasa CEO Fani Tshifularo.
“I don't think they were going to be like a solution as long as you are dependent on imported crude oil. It will be a very different conversation if you have a local crude oil. And not only local crude oil, if that crude oil is owned by a government, it will be a very different conversation.”
South Africa currently imports the majority of its refined fuel products, with the Basic Fuel Price (BFP) — which reflects international costs — accounting for roughly 43% of the pump price. This structure leaves the country highly sensitive to global supply disruptions, exchange rate fluctuations, and shipping costs.
Authorities noted that the recent spike in prices is largely linked to geopolitical instability affecting key supply routes, including the Strait of Hormuz, as well as broader global supply and demand dynamics.
While calls to revive domestic refining capacity have intensified, Tshifularo cautioned that such projects would take years to materialise and would not address immediate price pressures.
“Reopening a refinery is not something that can be done in weeks or months. It requires significant capital investment and long-term planning,” he said.
In some cases, the situation is even more complex. Tshifularo said certain refineries have been permanently converted into storage infrastructure, while others suffered extensive damage — including flooding — rendering them effectively inoperable in their current state.
He added that rebuilding or upgrading refining capacity would likely involve “greenfield” or major redevelopment projects, further extending timelines before any tangible benefits could be realised.
However, government and industry stakeholders acknowledged the strategic importance of restoring some level of domestic refining capacity over the longer term.
Plans are under consideration to revive the Sapref refinery, which was acquired by the Central Energy Fund, as part of efforts to rebuild lost capacity. South Africa has lost nearly half of its refining capability in recent years — estimated at around 300,000 barrels per day — increasing reliance on imports.
Raphi Maake, director for fuel pricing mechanism at the DMPR, said any future refinery investment would ideally be supported by local feedstock, such as oil and gas discoveries in areas like the Orange Basin.
Maake said developing domestic resources could significantly reduce exposure to global markets, though this too remains a long-term prospect.
“There is potential in local oil and gas exploration, which could be a game-changer if successfully developed,” Maake said, while also noting regulatory and environmental challenges facing such projects.
“Investment in a refinery, of course, there's no doubt that we need to invest in a refinery, provided we have this local feedstock that we can then use and then convert that refinery into finished product.”
In the meantime, the government emphasised that fuel supply remains stable despite isolated reports of shortages at some service stations. These incidents were attributed to logistical constraints and surges in demand — particularly for diesel — as consumers attempt to stock up ahead of anticipated price hikes.
The DMPR reiterated that South Africa continues to source crude oil and refined products from a diverse range of suppliers, including Nigeria, Angola, and Ghana, as well as markets beyond Africa.
Ultimately, Tshifularo stressed that while reopening refineries forms part of a broader energy strategy, it is not a short-term remedy for high fuel prices.
“Fuel prices will continue to be driven by global factors for the foreseeable future,” Tshifularo said, adding that structural solutions will require sustained investment, policy certainty, and diversification of energy sources.
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