Cape Town – Minister of Mineral and Petroleum Resources Gwede Mantashe has warned that rising geopolitical tensions in the Middle East could lead to unavoidable fuel price increases and potential supply disruptions for countries like South Africa that rely heavily on imported petroleum products.
Speaking at the Southern Africa Oil and Gas Conference in Cape Town, he said the conflict between the United States and Iran had already pushed global oil prices above $100 per barrel, increasing pressure on fuel supply chains.
“Since the onset of the conflict in the Middle East, fuel supply chains have experienced disruptions, while the under-recovery on fuel prices has continued to fluctuate. While questions remain about potential fuel supply disruptions, the reality is that substantial fuel price increases are increasingly unavoidable,” Times Live quoted Mantashe as saying.
Mantashe said the government is engaging with industry to secure fuel supplies without immediately using strategic reserves. He argued that South Africa’s long-term solution lies in developing its own petroleum resources, particularly offshore gas and oil potential in areas like the Outeniqua and Orange basins.
As reported by IOL, South Africa’s fuel supply, while currently stable, faces growing vulnerability due to limited local refining capacity and heavy reliance on imported crude. Experts warn that any escalation in Middle East tensions could disrupt supply chains, potentially leading to fuel rationing and long queues. The country now operates only two crude oil refineries—NATREF and Astron Energy—alongside Sasol’s Secunda coal-to-liquids plant, after the permanent closure of two major refineries.
Industry stakeholders are increasing monitoring efforts, moving from weekly to daily coordination with the DMPR, Transnet, and wholesalers to respond rapidly to changes.
Rising fuel prices are expected to ripple through the economy, increasing transport and logistics costs, straining consumer budgets, and potentially exacerbating energy poverty.
Follow African Insider on Facebook, X and Instagram
Picture: X/@GwedeMantashe1
For more African news, visit Africaninsider.com
Compiled by Betha Madhomu
