The Minister of Mineral and Petroleum Resources, Gwede Mantashe, says South Africa must urgently increase fuel refining capacity to shield the economy.
This comes amid rising oil prices due to the US-Israel-Iran conflict.
Speaking at the Southern Africa Oil and Gas Conference in Cape Town, Mantashe warned petrol costs could spike next month.
He stressed that activating existing refineries, including PetroSA and South African Petroleum Refineries, is key to maintaining fuel availability.
“The price is unbelievable, unpredictable. If we want to maintain product availability in our country, this crisis does communicate to us the urgency of increasing our refining capacity. If we don’t do that, we’re going to have the price uncontrollable,” he told the Southern Africa Oil & Gas Conference on Monday.
Oil prices eased on Monday as investors weighed hopes for the reopening of the crucial Strait of Hormuz against concerns of further attacks on energy infrastructure.
International benchmark Brent North Sea crude was up just 0.1 per cent — after rising about three per cent earlier in the day — and the main US contract, West Texas Intermediate, shed more than one per cent.
That came as a non-Iranian oil tanker transited the Strait of Hormuz with its automatic transponder system activated, despite major disruptions to shipping in the crucial waterway, according to the monitoring service Marine Traffic.
South Africa’s fuel supply remains stable for now, with local refineries and imported fuel ensuring adequate supply for March and April.
The Fuel Industry Association of South Africa says the country’s fuel supply remains stable despite growing uncertainty in global energy markets.
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CEO Avhapfani Tshifularo says current supplies supported by imported refined fuel products remain secure.
“We are not even looking at shortages right now because the supply requirements are being met and the individual companies are able to supply their customers as per normal refuelling patterns. Should the situation change, we will reassess in terms of what needs to happen as a country.”
At the same time, South African motorists are bracing for possible sharp fuel price increases in April, as the conflict in the Middle East pushes global oil prices.
Current estimates based on Central Energy Fund data suggest motorists could face increases of close to R4 per litre for petrol.
Diesel could go up by about R6.75 per litre if conditions remain unchanged by the end of the pricing cycle.