South Africa is taking steps to strengthen its energy security and reduce its reliance on imported fuel.
Image: GCIS
South Africa is taking steps to strengthen its energy security and reduce its reliance on imported fuel.
This was revealed by Mineral and Petroleum Resources Minister Gwede Mantashe during the Fuels Industry Imbizo in Johannesburg on Tuesday, where he outlined government plans to build strategic fuel stocks equivalent to 60 days of net fuel imports, as well as to accelerate oil and gas exploration and advance regulatory reforms in the petroleum sector.
IOL previously reported that the ongoing war in the Middle East has placed renewed focus on South Africa’s strategic oil reserves as the conflict continues to push oil prices higher and unsettle global energy markets.
According to reports, South Africa has about 7 to 8 million barrels of strategic fuel reserves, equal to around two weeks of demand, below the 90-day benchmark used by energy-secure countries.
He said the 60-day stockholding plan is aimed at ensuring South Africa has enough crude oil and refined fuel reserves to cushion the country against global supply disruptions and market shocks.
"In 2024, the Department commissioned a comprehensive vulnerability assessment of South Africa’s strategic petroleum stocks. The study identified several areas requiring urgent attention, including the need to strengthen stockholding arrangements and increase domestic refining capacity, Mantashe said.
"In response, we have developed the draft Strategic Petroleum Stocks Policy, which isnow ready for Cabinet consideration prior to publication for public comment".
He said the policy proposes a mixed stockholding model under which the South African National Petroleum Company (SANPC) will be responsible for maintaining strategic reserves equivalent to 60 days of net imports.
"The policy proposes a mixed stockholding model under which the South African NationalPetroleum Company (SANPC), will maintain strategic reserves equivalent to 60 days of net imports in both crude oil and refined products".
"This represents a major step towards strengthening South Africa’s resilience against future supply disruptions".
IOL Business