Johannesburg: Mineral and Petroleum Resources Minister Gwede Mantashe has outlined the 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.
According to South African Government News Agency, Minister Mantashe 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. He emphasized that events occurring thousands of kilometers away continue to affect fuel prices, supply chains, investment decisions, and economic stability globally. Despite these challenges, South Africa has maintained fuel supply stability through close cooperation between the government and the petroleum sector.
To build long-term, sustainable resilience against external shocks, the department has finalized the draft Strategic Petroleum Stocks Policy, which will be put before Cabinet for consideration. This policy proposes a mixed stockholding model, where 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 initiative is complemented by efforts to unlock domestic upstream potential through the implementation of the Upstream Petroleum Resources Development Act (UPRDA).
The Minister also highlighted the need for South Africa to accelerate local gas and oil exploration to improve energy security and reduce vulnerability to external shocks. Mantashe noted that geopolitical disruptions have exposed the risks associated with excessive dependence on imported refined petroleum products, urging the country to position itself as a producer where commercially viable resources exist.
Turning to South Africa's energy transition, Mantashe emphasized the importance of developing a diversified and resilient energy mix. He highlighted biofuels as an untapped economic and energy resource with the potential to support agricultural development, create employment, and reduce greenhouse gas emissions. The publication of the regulated biofuels price last year marked a milestone in providing regulatory certainty for investment in this sector.
Moreover, Mantashe pointed to Liquefied Petroleum Gas (LPG) as a viable alternative to paraffin, particularly as global tensions impact paraffin prices. He stressed the need for coordinated investment in infrastructure, storage, distribution networks, and market development to ensure every South African household has access to LPG.
The Minister concluded by calling on the industry to work with the government to ensure the future of South Africa's energy security, urging stakeholders to identify practical solutions, strengthen partnerships, and unlock investment in the petroleum sector.
