South Africa’s biggest petrol company is preparing to shut down a major refinery

Sasol’s National Petroleum Refiners of South Africa (Natref) facility in Sasolburg has ramped up production by 76% as it prepares for a scheduled maintenance shutdown in early 2027.

The facility – a joint venture between Sasol and TotalEnergies – reached an output of 25.8 million barrels during the financial year ending 30 June 2026, compared to 14.7 million barrels in the year before.

Sasol achieved this by resolving crude oil supply chain constraints and utilising the capacity of its partner, Prax South Africa (Prax SA), which is currently undergoing business rescue.

The production boom is also a major win for domestic fuel security, especially with maintenance scheduled at the Natref facility during the first quarter of the 2027 financial year.

To prevent potential future fuel shortages or heavy reliance on sudden imports, Sasol aggressively built up its local fuel inventories towards the end of the 2026 financial year, buffering supply during the shutdown.

Reporting its financial year-end results, the company noted that it did this by focusing on the factors it could control, including safety, operational performance, cost and capital discipline.

“We leveraged our integrated value chains across regions, ensuring reliable energy and chemical product supply amidst the Middle East conflict,” it said.

“Supported by stronger production performance and a more supportive macroeconomic backdrop during the last quarter of the financial year, the business delivered within or above our market guidance across all our production and sales metrics.”

Sasol’s Secunda Operations achieved its highest annual production in the past five years, while Natref maintained strong performance in the final quarter, playing a critical role in South Africa’s fuel supply.

The company also managed to decrease its financial-year external purchases by 51%, thanks to the two refineries’ stronger production performance.

“Looking ahead, the operating environment is expected to remain volatile, driven by ongoing geopolitical uncertainty in the Middle East and evolving market dynamics,” warned Sasol.

“We remain focused on maintaining operational continuity, supporting our customers and proactively responding to changing market conditions.”

South Africa’s new fuel rationing laws

The Department of Mineral and Petroleum Resources (DMPR) has published its draft Strategic Petroleum Stock Policy, which aims to address concerns that were raised during the recent global fuel crisis.

The conflict between the US and Iran disrupted oil production and shipping in the Middle East, which led to massive price increases and concerns about possible shortages.

This led to panic buying in South Africa, with some petrol stations in remote areas limiting sales to both private and commercial buyers.

The draft Strategic Petroleum Stock Policy intends to fix these issues while also addressing broader concerns about the country’s fuel capacity.

These include the loss of a considerable portion of the country’s fuel refining capacity, regulatory gaps, and vulnerabilities in the supply chain.

As a net importer of crude oil and refined petroleum products, South Africa is particularly vulnerable to international supply chain disruptions and price shocks.

The policy establishes a framework for the mandatory storage of emergency reserves, as well as the procedure to follow when an emergency is declared.

Its primary objective is to ensure that South Africa is ready for future crises by maintaining a buffer of fuel stocks that can be utilised during an official state of emergency.

The department added that it wants to build a holding of emergency fuel reserves as well as make it mandatory for private manufacturers and wholesalers.

It noted that these reserves are specifically intended for catastrophic events, not minor operational inefficiencies, and that the Minister of Mineral and Petroleum Resources would be the authority to trigger the release of stocks.