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No immediate fuel shortage threat for South Africa despite global tensions

South Africa faces no immediate fuel shortage risk despite Middle East tensions, though rising crude oil prices could push pump costs higher in April.

SA Press||2 min read
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No immediate fuel shortage threat for South Africa despit... - South African business news

South Africa faces no imminent risk of running out of fuel, the Department of Mineral and Petroleum Resources has confirmed, even as escalating Middle East hostilities continue to push international oil prices upward.

Government monitoring global developments closely

The department revealed it is maintaining ongoing communication with oil companies operating within the country to safeguard both the stability and security of national fuel supplies. It said careful attention is being paid to unfolding events in the Middle East and their potential consequences for global oil markets and local pump prices.

"The department monitors the developments in the Middle East and the possible impact on global oil markets and fuel prices."

While acknowledging that geopolitical instability could exert upward pressure on international crude oil prices, officials stressed there is currently no cause for alarm regarding fuel availability across the country.

South Africa's domestic refining capacity has diminished following the closure of several facilities in recent years. However, the country still relies on two functioning crude oil refineries — Natref and Astron Energy — alongside Sasol's coal-to-liquids operation at Secunda, which remains a critical contributor to local fuel production.

The Astron Energy refinery is presently offline for scheduled maintenance work. The department noted, however, that the company had already arranged sufficient fuel imports to cover national demand throughout the maintenance period, ensuring no disruption to supply.

Motorists brace for higher prices at the pump

Despite reassurances on supply, consumers may not escape the financial impact of the global turmoil entirely. The department cautioned that sustained increases in international crude oil prices could translate into steeper fuel costs when April adjustments take effect.

"Oil companies that at this stage import refined petroleum products from countries affected by the conflict are also investigating alternative sources of supply to ensure availability in the local market."

Companies currently sourcing refined petroleum products from conflict-affected nations are actively exploring alternative supply channels to maintain consistent availability on the domestic market. The department expressed confidence that tensions would subside in the near term, which would in turn help stabilise global oil markets and bring relief to fuel prices both internationally and locally.

South Africa's fuel supply chain remains vulnerable due to reduced domestic refining capacity, with only two operational refineries and Sasol's Secunda plant sustaining local production. Rising international crude oil prices driven by Middle East tensions could squeeze household budgets and increase transport costs for businesses already under economic pressure. Should global instability persist, April fuel price adjustments may hit consumers hard, though the government's confidence in near-term stabilisation offers cautious hope for price relief.

Source: Maroela Media

Published by SA Press

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