Mineral and Petroleum Resources Minister Gwede Mantashe has unveiled South Africa’s plan to secure its long-term, sustainable fuel supply.
During his keynote address at the Fuels Industry Association of South Africa (FIASA) Annual Imbizo, the minister warned that geopolitical tensions continue to threaten local energy security.
“The ongoing conflict in the Middle East has once again reminded us that energy security cannot be taken for granted,” Mantashe said.
“Events occurring thousands of kilometres away continue to affect fuel prices, supply chains, investment decisions, and economic stability across the globe.”
He noted that South Africa has not been immune to these developments, adding that the global energy supply disruptions placed pressure on fuel-importing countries, including our own.
Despite the pressure, the country maintained fuel supply stability throughout the ongoing Middle East conflict.
To ensure this remains the case, the minister’s department finalised the draft Strategic Petroleum Stocks Policy for Cabinet to consider.
“The policy proposes a mixed stockholding model, under which the South African National Petroleum Company (SANPC) will maintain strategic reserves equivalent to 60 days of net imports in both crude oil and refined products,” he said.
“This represents a major step towards strengthening South Africa’s resilience against future supply disruptions.”
Alongside this policy, the department will continue to push for the implementation of the Upstream Petroleum Resources Development Act (UPRDA).
Mantashe admitted that publishing the regulations took longer than originally anticipated, but noted that extensive stakeholder submissions have been considered, and the regulations are ready for publication and implementation.
The minister added that South Africa can no longer afford to remain a passive buyer in global energy markets and must look inward by accelerating local gas and oil exploration.
“The geopolitical disruptions we continue to witness have exposed the risks associated with excessive dependence on imported refined petroleum products,” he said.
“If we are serious about improving our energy security, reducing our vulnerability to external shocks, and strengthening our economic sovereignty, then we must accelerate exploration and development of our own oil and gas resources.”
Utilising every possible fuel source
Mantashe explained that South Africa’s energy transition will not abandon one energy source for another.
The Integrated Resource Plan 2025 aims to build a diversified and resilient energy mix that supports economic growth, industrial development, energy security, and environmental sustainability.
The minister outlined that conventional fuels will continue to play a role in the local economy, but noted that biofuels remain a major, largely underutilised energy source.
He mentioned that biofuels represent an important opportunity for South Africa, whose development could sustainably support a range of sectors, creating employment and stimulating new investment.
“We have engaged with the Minister of Agriculture, who has expressed strong support for the biofuels programme,” the Minister explained.
“This gives us confidence about the availability of feedstock required to support the industry’s growth.”
Regulations regarding the pricing of biofuels in South Africa were released last year, which represents an important milestone in providing regulatory certainty and creating conditions conducive to investment.
“We now look to the industry to partner with government in developing this strategic sector and ensuring its long-term success,” the minister said.
Beyond biofuels, Mantashe highlighted Liquefied Petroleum Gas (LPG) as a viable alternative to skyrocketing paraffin prices.
“The recent pressure on paraffin prices should also encourage us to accelerate the growth of the Liquefied Petroleum Gas market,” he said.
“LPG offers households a cleaner, more efficient, and often more affordable alternative for cooking and heating.”
This fuel source can also be utilised in some vehicles on our roads, provided that they have undergone the relevant conversions.
“Our mission is to ensure that every South African household has access to LPG as a viable energy option,” the minister added.
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