Mineral and Petroleum Resources Minister Gwede Mantashe has outlined government’s comprehensive plan to fortify South Africa’s energy security, while driving the transition toward sustainable energy.
The Minister delivered the keynote address at the Fuels Industry Association of South Africa Annual Imbizo, which kicked off at the Sandton Convention Centre in Johannesburg on Wednesday.
The Minister warned that geopolitical tensions – first between Russia and Ukraine, and now in the Middle East – are a stark reminder that South Africa’s energy security “cannot be taken for granted”.
“The ongoing conflict in the Middle East has once again reminded us that energy security cannot be taken for granted. Events occurring thousands of kilometres away continue to affect fuel prices, supply chains, investment decisions, and economic stability across the globe.
“South Africa has not been immune to these developments. The disruption of global energy supply chains has contributed to increased volatility in international fuel markets and placed pressure on fuel-importing countries, including our own,” Mantashe said.
Despite this, he added, South Africa has “maintained fuel supply stability” through close cooperation between government and the petroleum sector.
“I would, therefore, like to thank the industry for working with government to ensure that fuel supplies remain sufficient to meet domestic demand. This collaboration demonstrates what can be achieved when we work together towards a common objective.
“However… we remain troubled by incidents where some operators increased fuel prices ahead of official price adjustments. While these actions were limited to a minority of participants, they undermined public confidence and tarnished the reputation of the broader industry.
“Compliance with regulatory requirements is not optional. It is fundamental to maintaining public trust and ensuring a level playing field for all participants,” Mantashe emphasised.
Petroleum stocks
To build long-term, sustainable resilience against external shocks, the department has finalised the draft Strategic Petroleum Stocks Policy, which will be put before Cabinet for consideration.
The policy came about after the department commissioned a comprehensive study on the country’s strategic petroleum stocks in 2024, which identified areas for attention, including the need to strengthen stockholding arrangements and increase domestic refining capacity.
“The policy proposes a mixed stockholding model, under which the South African National Petroleum Company (SANPC), will maintain strategic reserves equivalent to 60 days of net imports in both crude oil and refined products.
“This represents a major step towards strengthening South Africa’s resilience against future supply disruptions,” Mantashe said.
This step is complemented by a firm push to unlock domestic upstream potential with the implementation of the Upstream Petroleum Resources Development Act (UPRDA).
“Whereas the publication of the regulations took longer than originally anticipated, we are pleased to report that the extensive stakeholder submissions have been fully considered, and that the regulations are now ready for publication and implementation.
“Together, the Act and its regulations will establish a dedicated regulatory framework for the upstream petroleum sector, which is distinct from mining, thereby creating a more appropriate and investment friendly environment for oil and gas development,” the Minister said.
Furthermore, South Africa can no longer afford to remain a passive buyer in global energy markets and must look inward by accelerating local gas and oil exploration.
“The geopolitical disruptions we continue to witness have exposed the risks associated with excessive dependence on imported refined petroleum products.
“If we are serious about improving our energy security, reducing our vulnerability to external shocks, and strengthening our economic sovereignty, then we must accelerate exploration and development of our own oil and gas resources.
“South Africa cannot indefinitely remain a price taker in global energy markets. We must position ourselves to become producers, where commercially viable resources exist,” Mantashe insisted.
Alternative sources
Turning to South Africa’s energy transition, Mantashe told the conference that the country is intent on a transition that does not abandon one energy source for another.
Related to this, the Integrated Resource Plan 2025 sets out the country’s ambitions to build a “diversified and resilient energy mix that supports economic growth, industrial development, energy security, and environmental sustainability”.
The Minister noted that while conventional fuels will continue to play a role in South Africa’s economy, biofuels remain a major, largely untapped economic and energy resource.
“Within this context, biofuels represent an important opportunity. The development of a sustainable biofuels industry has the potential to support agricultural development, create employment opportunities in rural communities, stimulate new investment, and contribute meaningfully to the reduction of greenhouse gas emissions.
“We have engaged with the Minister of Agriculture [John Steenhuisen], who has expressed strong support for the biofuels programme. This gives us confidence about the availability of feedstock required to support the industry’s growth,” Mantashe said.
Furthermore, regulations on pricing have also been released.
“The publication of the regulated biofuels price last year marked an important milestone in providing regulatory certainty and creating conditions conducive for investment.
“We now look to the industry to partner with government in developing this strategic sector and ensuring its long-term success,” the Minister said.
Moreover, Mantashe said LP Gas is a viable alternative as global tensions wreak havoc on prices on paraffin.
“The recent pressure on paraffin prices should also encourage us to accelerate the growth of the Liquefied Petroleum Gas market. LPG offers households a cleaner, more efficient, and often more affordable alternative for cooking and heating.
“Our mission is to ensure that every South African household has access to LPG as a viable energy option.
“Achieving this objective will require coordinated investment in infrastructure, storage, distribution networks, and market development. Industry participation will be crucial,” the Minister noted.
He called on the industry to work with government to ensure the future of South Africa’s energy security.
“Let us use this imbizo to identify practical solutions, strengthen partnerships, unlock investment, and build a petroleum sector that is secure, competitive, transformed, and capable of supporting South Africa’s developmental objectives.
“Working together as government and industry, we can ensure that the future of energy mobility is not something we merely react to, but something we actively shape,” Mantashe concluded. – SAnews.gov.za
