South Africa can meet domestic fuel demand for the moment, the Ministry of Mineral and Petroleum Resources said on Tuesday even as rising global crude prices and the conflict in the Middle East threaten to disrupt international supply chains.
In a media statement, the ministry said it is in constant contact with oil companies operating in the country and is monitoring developments in the Middle East and their likely impact on global oil markets and pump prices.
“While prolonged geopolitical tensions may exert pressure on international oil prices, the department wishes to assure the public that there is currently no immediate risk of fuel shortages in South Africa,” it said.
South Africa’s refining capacity has shrunk in recent years but two crude oil refineries – NATREF and Astron Energy – remain operational.
Domestic production is also supported by the Sasol Secunda coal-to-liquids plant, which the government described as a critical buffer for the market.
Most crude and refined products imported into South Africa are sourced from West Africa and increasingly from other African suppliers, a shift the ministry said helps mitigate exposure to disruptions in traditional supply routes.
Still, it warned that continued increases in international crude prices are expected to push pump prices higher from April and that under-recovery levels have fluctuated since the onset of the Middle East conflict.
The ministry said oil companies that currently import products from countries affected by the fighting are actively seeking alternative suppliers to ensure uninterrupted availability in the domestic market.
JN/APA