By Ayomide Otitoju
South Africa is planning to increase its strategic petroleum reserves to about 36 million barrels, marking the country’s biggest move to strengthen fuel security since the apartheid era.
The proposal was contained in a draft Strategic Petroleum Stocks Policy released by the Department of Mineral Resources and Energy (DMRE) for public consultation.
The initiative is aimed at reducing South Africa’s vulnerability to global oil supply disruptions, price fluctuations, and geopolitical tensions that can affect international energy markets.
The government said recent concerns over global oil supplies, including disruptions linked to conflicts in the Middle East, have highlighted the need for stronger emergency fuel reserves.
According to the draft policy, South Africa, as a net importer of crude oil and refined petroleum products, remains exposed to international supply chain challenges and market volatility.
The proposed framework would require the country to maintain emergency petroleum reserves equivalent to 60 days of national demand, with approximately two-thirds stored as crude oil and the remaining portion as refined products.
The DMRE said it is working with the National Treasury and the state-owned South African National Petroleum Company to develop funding mechanisms for acquiring and maintaining strategic petroleum stocks.
South Africa consumes an estimated 27 billion litres of petroleum products annually, with the transport sector depending on liquid fuels for about 90 per cent of its energy needs.
The government warned that disruptions to fuel supplies could lead to significant economic losses and social challenges due to the critical role petroleum plays in the economy.
Under the proposed policy, licensed fuel manufacturers and wholesalers would also be required to maintain an additional 14 days of refined petroleum product stocks, including petrol, diesel, and jet fuel.
The government said the combined approach would provide long-term energy security through national reserves while allowing private sector operators to improve short-term supply resilience.
Unlike South Africa, Nigeria has reduced its reliance on imported petrol following increased production from the Dangote Petroleum Refinery.
