South Africa is planning to rebuild its strategic petroleum reserves as growing geopolitical tensions and increased reliance on imported fuel raise concerns about the country’s energy security.
Under a draft policy released for public comment, the government proposes maintaining emergency oil reserves equal to 60 days of national demand. Based on estimated daily consumption of around 600,000 barrels, the target would amount to approximately 36 million barrels, with most of the stock held as crude oil and the remainder as refined fuel products.
The proposal also requires licensed fuel wholesalers and importers to maintain 21 days’ worth of fuel inventories, while the National Treasury and the South African National Petroleum Company will be responsible for developing financing arrangements for the reserve programme. Mineral and Petroleum Resources Minister Gwede Mantashe said the policy is intended to strengthen South Africa’s ability to withstand future disruptions in global fuel supplies.
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Economic consequences
The move comes at a time when international energy markets remain volatile. Shipping through the Strait of Hormuz, one of the world’s most important oil transit routes, has slowed amid regional tensions, highlighting the risks facing countries that depend heavily on imported petroleum. Estimates suggest that prolonged fuel supply interruptions could have significant economic consequences for South Africa.
Energy analysts estimate the country currently holds only 7.7 million to 8 million barrels of crude oil in reserve, enough to cover roughly 13 days of fuel demand. This is well below the level generally considered sufficient for a strategic emergency stockpile. South Africa previously built substantial oil reserves during the 1970s, when international sanctions prompted the apartheid government to invest in emergency storage infrastructure, including the Saldanha Bay oil storage facility. However, reserve levels have declined over the past three decades, and the controversial sale of 10 million barrels in 2015 later declared unlawful further reduced the country’s emergency stocks.
The need for larger reserves has become more pressing as domestic refining capacity has shrunk, leaving South Africa increasingly dependent on imported fuel. Additional pressure is expected ahead of the introduction of cleaner, low-sulphur fuel standards scheduled for July 2027, which will require further adjustments to the country’s fuel supply chain. If adopted, the proposed policy would represent one of the most significant changes to South Africa’s fuel security strategy in decades, aimed at improving the country’s preparedness for future global supply disruptions.
