Minister addresses fuel supply concerns at Cape Town conference
Mineral and Petroleum Resources Minister Gwede Mantashe has confirmed that government remains in continuous dialogue with petroleum industry stakeholders to safeguard fuel supply stability as global disruptions threaten energy security.
Speaking at the 5th Southern Africa Oil and Gas Conference in Cape Town, Mantashe said his department is actively pursuing all available supply channels to ensure South Africans do not face fuel shortages, particularly as conflict in the Middle East drives up prices and disrupts traditional supply routes.
"To maintain product availability in our country, as communicated last week, the department remains in constant engagement with industry players to explore all possible supply sources. These engagements are aimed at ensuring uninterrupted fuel availability in the domestic market, without immediately utilising the country's strategic reserves."
The minister cautioned that nations dependent on imported petroleum products are especially exposed to global market volatility, warning that significant fuel price hikes are becoming increasingly unavoidable. He argued that the only lasting remedy lies in developing South Africa's own petroleum resources through rigorous exploration and responsible extraction.
Mantashe highlighted the country's considerable offshore petroleum potential, pointing to major gas discoveries in the Outeniqua Basin and promising oil finds in the Orange Basin, where geological data suggests reserves discovered in Namibia may stretch into South African waters. However, he expressed frustration that legal challenges from environmental groups have stalled progress.
"South Africa, and indeed the African continent at large, cannot afford to remain poor while endowed with abundant natural resources. We must harness these resources responsibly to drive inclusive economic growth, create employment opportunities, and eradicate poverty."
Legislative reforms to accelerate petroleum development
The minister outlined several regulatory reforms designed to unlock the petroleum sector's economic contribution. He noted that the Upstream Petroleum Resources Development Act (UPRDA) has separated petroleum from mining legislation and established a regulatory framework to fast-track exploration and production. Regulations stemming from the Act, shaped by extensive industry input, are expected to be published for implementation by the end of March.
Mantashe also confirmed that modernisation of the Petroleum Products Act is advancing, with the draft Petroleum Products Bill currently undergoing certification before submission to Cabinet and thereafter to Parliament. These changes aim to ensure equitable access to petroleum resources while reducing long-term dependence on imported refined products.
On the contentious matter of shale gas development, the minister revealed that engagements with the ministers of Environmental Affairs and Water and Sanitation have taken place to finalise regulations. He pledged that his department stands ready to lift the moratorium on shale gas development as soon as the regulations are promulgated.
"South Africa must not stand on the sidelines while the global energy landscape evolves and while our neighbouring countries unlock the value of their resources."
Mantashe reaffirmed government's commitment to developing the country's petroleum potential in an orderly and environmentally sustainable manner, while simultaneously advancing meaningful social and economic development for all South Africans.
South Africa's heavy reliance on imported petroleum products leaves consumers and businesses directly exposed to global price shocks driven by Middle East instability and supply chain disruptions. Efforts to fast-track offshore exploration and modernise petroleum legislation could eventually reduce this vulnerability, create jobs, and stimulate economic growth in coastal regions. Whether regulatory reforms and the lifting of the shale gas moratorium proceed smoothly will depend on balancing environmental concerns with the urgent need for energy self-sufficiency.
