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South Africa is planning to increase its strategic petroleum reserves to about 36 million barrels, marking its first major expansion of emergency oil stockpiles since the apartheid era, as the country seeks to protect its economy from future global fuel supply disruptions.
The proposal was disclosed by South Africa’s Department of Mineral Resources and Energy (DMRE) through a draft Strategic Petroleum Stocks Policy released for public consultation.
Under the proposal, the government intends to maintain emergency oil reserves equivalent to 60 days of national demand, with about two-thirds held as crude oil and the remainder as refined petroleum products.
The proposal comes as governments across Africa strengthen energy security following heightened concerns over global oil supply disruptions triggered by recent geopolitical tensions, particularly the conflict involving Iran.
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The crisis exposed the vulnerability of countries heavily dependent on imported crude oil and refined petroleum products, prompting several African governments to expand storage capacity, diversify supply sources and build emergency stockpiles.
What they are saying
The South African government said it is working with the National Treasury to establish financing arrangements that will support the acquisition and maintenance of the country’s strategic petroleum reserves.
- “The National Treasury and the state-owned South African National Petroleum Co. will develop financing mechanisms and instruments for the financing and guaranteeing strategic petroleum stocks,” the DMRE stated.
According to the draft policy, South Africa consumes an average of 27 billion litres of petroleum products annually, while the transport sector relies on liquid fuels for about 90% of its energy needs.
The government noted that petroleum remains a major contributor to the country’s economy, warning that any disruption in fuel supply could result in significant economic losses and widespread social disruption.
Beyond government-owned emergency reserves, the policy would also require fuel manufacturers and wholesalers to maintain additional inventories of refined petroleum products.
- “The policy introduces a mandatory obligation for licensed manufacturers and wholesalers to maintain an additional 14 days of refined product stocks, such as diesel, petrol and jet fuel,” the draft policy stated.
The government explained that the arrangement would allow the state to provide long-term energy security through strategic reserves, while private sector operators would strengthen short-term supply resilience, helping cushion the economy against global supply chain disruptions.
More insights
The draft policy says the initiative is aimed at reducing South Africa’s exposure to volatile international oil markets and geopolitical crises.
- “As a net importer of crude oil and increasingly refined products, the country remains vulnerable to international supply chain disruptions, price volatility, and geopolitical shifts. This Strategic Petroleum Stocks Policy establishes a robust framework for the mandatory holding of emergency reserves to insulate the South African economy,” the policy stated.
The proposal follows the disruption caused by the recent Iran conflict, which sent global oil prices higher and affected fuel supply chains worldwide. Traffic through the Strait of Hormuz, one of the world’s most important oil shipping routes, slowed significantly during the crisis, raising fears of prolonged supply shortages.
The impact was also felt across Africa. Several governments introduced temporary measures to cushion consumers from rising fuel costs, while countries including Morocco, Uganda and Ghana announced plans to strengthen fuel storage infrastructure, expand strategic reserves or increase domestic refining capacity to reduce dependence on imported petroleum products.
What you should know
South Africa’s move mirrors a broader shift across Africa toward strengthening domestic energy security, with Nigeria’s Dangote Petroleum Refinery emerging as one of the continent’s biggest alternative sources of refined fuel.
Unlike South Africa, which remains a net importer of petroleum products, Nigeria has significantly reduced its dependence on imported petrol following the ramp-up of operations at the Dangote refinery.
- On March 22, 2026, Nairametrics reported that the refinery exported 456,000 tonnes of refined petroleum products through 12 cargoes lifted by international traders. The shipments, comprising Premium Motor Spirit (PMS), were delivered to several African countries, including Côte d’Ivoire, Cameroon, Tanzania, Ghana and Togo.
The refinery further expanded supplies in April as countries affected by disruptions linked to the Iran conflict sought alternative fuel sources. Dangote disclosed that the facility had already shipped 17 cargoes of gasoline to African markets, while exports of urea fertiliser also increased as buyers looked beyond traditional suppliers amid the global supply uncertainty.
