JOHANNESBURG, July 13 – South Africa is proposing a major overhaul of its strategic fuel reserve policy that would require both the government and private sector to maintain mandatory fuel stockpiles, as the country seeks to strengthen its resilience against future energy supply disruptions.
The proposal, outlined in a draft policy document issued by the Department of Mineral and Petroleum Resources and seen by African Economy Inc., comes amid sustained pressure on global energy markets caused by the ongoing Middle East crisis, which has disrupted shipments through the Strait of Hormuz, one of the world’s most important transit routes for crude oil and liquefied natural gas.
Under the proposed framework, all licensed fuel wholesalers and importers would be required to maintain fuel stocks equivalent to 21 days of supply. Of these reserves, 70% would consist of crude oil, while the remaining 30% would be held as refined petroleum products, including diesel and jet fuel.
The government would also establish strategic reserves equivalent to 60 days of national supply, following the same allocation between crude oil and refined products. These reserves would only be released during a formally declared state of emergency arising from what the policy describes as “catastrophic events.”
According to the Department of Mineral and Petroleum Resources, “There is a compelling need for South Africa to have a Strategic Stocks Policy to enhance the state of readiness in the event of major oil supply disruptions.”
If adopted, the policy would represent South Africa’s most significant expansion of strategic fuel reserves since the 1970s, when underground crude oil storage facilities were constructed at Saldanha during the apartheid era. The draft, however, does not specify the exact storage capacity required to support the proposed reserve levels.
The government plans to manage its strategic stockpiles through the Saldanha and Milnerton storage facilities.
The proposal has been released for public consultation before any final policy is adopted. The Fuels Industry Association of South Africa, which represents major oil companies operating in the country, had not commented on the proposals at the time of publication.
The move comes as South Africa continues to face structural challenges in its downstream petroleum industry. Government estimates show the country consumes approximately 27 billion litres of petroleum products annually, while roughly half of its domestic refining capacity has been lost in recent years, increasing dependence on imported refined fuels and exposing the economy to greater supply and price volatility.
The proposed reserve requirements form part of broader efforts to strengthen South Africa’s energy security and reduce the country’s vulnerability to future geopolitical shocks affecting global oil markets.
