South Africa plans to build a 36 million-barrel petrol reserve as part of a new strategy to strengthen the country’s energy security and protect its economy from global oil supply disruptions.
According to Channels Television, the proposal is contained in a draft Strategic Petroleum Stocks Policy released by South Africa‘s Department of Mineral Resources and Energy (DMRE) for public consultation.
The move follows concerns over disruptions to global oil supplies during the recent Iran-US conflict, which pushed oil prices higher and slowed traffic through the Strait of Hormuz, a key global oil shipping route.
The draft policy states that South Africa, as a net importer of crude oil and refined petroleum products, remains vulnerable to international supply chain disruptions, price volatility and geopolitical tensions.
It proposes maintaining emergency petroleum reserves equivalent to 60 days of national demand, with about two-thirds stored as crude oil and the remainder as refined petroleum products.
The DMRE said the National Treasury and the state-owned South African National Petroleum Company would develop financing mechanisms to fund the acquisition and maintenance of the strategic reserves.
South Africa consumes around 27 billion litres of petroleum products annually, with the transport sector relying on liquid fuels for approximately 90 per cent of its energy needs. The government warned that any disruption in fuel supplies could have severe economic and social consequences.
The policy also proposes making it compulsory for licensed fuel manufacturers and wholesalers to maintain an additional 14 days of refined petroleum stocks, including petrol, diesel and jet fuel, to improve short-term supply resilience.
The government said the combination of state-owned strategic reserves and mandatory private sector stockholding would help cushion the economy against future global supply shocks.
South Africa remains a net importer of petroleum products, unlike Nigeria, which has reduced its dependence on imported petrol following increased production at the Dangote refinery.
