Government in active talks with suppliers to prevent fuel shortages
South Africa's government is engaged in ongoing negotiations with fuel suppliers to safeguard the country's energy supply as escalating conflict in the Middle East sends shockwaves through global oil markets. Minister of Minerals and Petroleum Resources Gwede Mantashe revealed on Monday that authorities are exploring every available avenue to maintain steady fuel imports rather than dipping into the nation's strategic oil reserves.
Speaking at the Southern African Oil and Gas Conference in Cape Town, Mantashe warned that heightened geopolitical tensions stemming from the Middle East crisis are fuelling unprecedented volatility and uncertainty across international petroleum markets. The government's priority, he said, is guaranteeing uninterrupted fuel availability for South African consumers and businesses.
"The reality is that significant fuel price increases are inevitable. Countries that rely heavily on the import of refined petroleum products remain particularly vulnerable to global market shocks."
The minister highlighted that surging oil prices have a direct knock-on effect on the broader cost of living, adding that a lack of access to these critical resources compounds the impact even further. The confrontation between Iran, the United States and Israel has intensified sharply, with shipping through the Strait of Hormuz — a passage that typically handles roughly one fifth of the world's oil supply — grinding to a near halt. Oil prices have surged by approximately 40% as a result, placing enormous strain on global markets.
Mantashe calls for domestic petroleum exploration to reduce import dependence
Mantashe told the conference that South Africa cannot afford to remain impoverished while sitting on abundant natural resources, urging the country to harness its own petroleum potential. He identified domestic production as the most viable long-term strategy for reducing vulnerability to international supply disruptions, but stressed this could only be realised through sustained exploration and responsible development of local petroleum deposits.
"We need to utilize these resources. But this can only be achieved through exploration and responsible exploitation of our own petroleum resources."
The minister took aim at environmental organisations, accusing them of obstructing virtually every oil and gas development initiative in the country. He described this sustained opposition as one of the most significant barriers to progress in the sector. In response, the government is pressing ahead with legislative reforms designed to unlock investment and accelerate petroleum development.
Central to these reforms is the Upstream Petroleum Resources Development Bill, which Mantashe described as a critical piece of legislation. The bill separates petroleum regulation from existing mining laws and establishes a dedicated framework intended to fast-track exploration and production. Mantashe noted that implementing regulations were initially expected by September last year, but extensive industry submissions necessitated additional review. Those submissions have now been processed, and the minister confirmed the regulations will be published before the end of March.
"We must act decisively, responsibly and in the national interest to unlock the full potential of our petroleum sector."
Mantashe reaffirmed his department's commitment to ensuring that South Africa's petroleum resources are developed in an orderly, responsible and environmentally sustainable manner, balancing economic imperatives with sound stewardship of the country's natural environment.
