JOHANNESBERG, July 14 – South Africa has proposed making strategic fuel reserves compulsory for both the government and private sector as it moves to improve the country’s ability to respond to supply disruptions.
The proposal, published by the Department of Mineral and Petroleum Resources for public consultation, would require all licensed fuel wholesalers and importers to hold fuel stocks equivalent to 21 days of supply. Of that amount, 70% would be crude oil, while the remaining 30% would be refined products such as diesel and jet fuel.
The government also plans to maintain its own strategic reserves covering 60 days, using the same allocation between crude oil and refined fuels. According to the draft policy, these reserves could be released during a declared state of emergency caused by major supply disruptions.
The department said the policy is aimed at improving South Africa’s readiness to deal with severe interruptions in oil supplies.
If approved, it would mark the country’s first major effort to strengthen strategic fuel reserves since underground crude oil storage facilities were built at Saldanha in the 1970s. The proposed government reserves would be managed from the Saldanha and Milnerton storage facilities.
South Africa currently consumes about 27 billion litres of oil products each year, according to government estimates. The country has also lost about half of its refining capacity in recent years, increasing its dependence on imported fuel.
The move comes as global energy markets continue to face pressure from the ongoing crisis in the Middle East, which has disrupted traffic through the Strait of Hormuz, a key route for oil and liquefied natural gas shipments.
