Mineral and Petroleum Resources Minister Gwede Mantashe has reiterated government’s commitment to strengthening South Africa’s energy security through increased refining capacity, strategic fuel stocks and accelerated developments in oil and gas, but also cautioned against a hasty transition away from conventional fuels.

Mantashe delivered this message during a keynote address on the first day of the Fuels Industry Imbizo hosted by industry organisation the Fuels Industry Association of South Africa.

Mantashe noted that recent geopolitical conflict in the Middle East had “once again” exposed the risks associated with an excessive reliance on imported refined petroleum products.

“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 country,” Mantashe said.

He added that existing domestic refining infrastructure currently accounted for only 40% of South Africa’s fuel requirements, with the balance met through imported refined products, stressing the need for restoring additional local refining capacity through the revitalisation of the South Africa Petroleum Refineries in Durban.

Further, Mantashe highlighted that strengthening refining capacity formed part of a broader national risk management strategy aimed at protecting the country from global supply disruptions.

Mantashe also urged the fuels industry to diversify fuel supply sources and work more closely with government to combat fuel adulteration, price manipulation and other illegal practices undermining public confidence in this sector.

He called out incidents involving fuel retailers increasing prices in anticipation of fuel price adjustments and warned that such conduct would destabilise the fuels industry.

“The adulteration of fuel products, particularly the illegal blending of diesel and paraffin is prevalent in the industry. The State cannot do anything about it on its own but working with the [fuels] sector, we can deal with it,” Mantashe said.

Moreover, Mantashe called for stronger collaboration between industry and government on policy development, stressing the need for industry stakeholders to engage proactively rather than responding only after legislation had been finalised.

He noted that the Petroleum Products Bill was progressing through Cabinet processes before submission to Parliament and said that stakeholders still had an opportunity to shape the legislation.

On the energy transition, Mantashe maintained that conventional fuels, such as coal, would continue playing an important role in South Africa’s economy “for decades”, despite growing global momentum towards electric vehicles and clean energy technologies.

He cautioned against dismantling existing energy technologies prematurely in pursuit of newer alternatives, arguing that developing economies, including South Africa, needed pragmatic and incremental transitions.

Mantashe also highlighted the importance of biofuels as a future growth lever, noting that the recent publication of the regulated biofuel pricing had created improved regulatory certainty for investors.

The Department of Mineral and Petroleum Resources is also working to accelerate environmental approvals for offshore oil and gas exploration projects, including activities in the Orange basin, spanning the maritime borders of South Africa and Namibia.

Additionally, regulations for shale gas growth are also being developed to support the eventual lifting of South Africa’s shale gas moratorium.

Mantashe also highlighted that government had completed a vulnerability assessment of South Africa’s strategic petroleum stocks and was developing a revised national stockholding policy.

He ended his address by calling for greater transformation within the petroleum sector, criticising the low representation of women at this event and urged the fuels industry to better reflect South Africa’s gender demographics at leadership level.

“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,” he concluded.