South Africa has proposed making strategic fuel reserves compulsory for both the government and private fuel companies as it seeks to strengthen energy security against future supply disruptions caused by global crises.
Under a draft Strategic Stocks Policy released for public consultation, all licensed fuel wholesalers and importers would be required to hold fuel reserves equivalent to 21 days of supply, with 70% stored as crude oil and 30% as refined products such as diesel and jet fuel. The government would maintain a larger strategic reserve covering 60 days, stored at facilities in Saldanha and Milnerton, to be released only during officially declared emergencies.
The proposal comes amid prolonged instability in global energy markets, including disruptions to shipping through the Strait of Hormuz, a critical route for oil and liquefied natural gas exports. South Africa has also become increasingly dependent on imported fuel after losing about half of its domestic refining capacity in recent years, consuming an estimated 27 billion litres of petroleum products annually.
If adopted, the policy would represent South Africa’s most significant expansion of its strategic fuel storage system since the 1970s. Authorities say the measures are designed to improve the country’s resilience to international supply shocks, reduce the economic impact of fuel shortages, and safeguard energy supplies during major emergencies. The draft policy is currently open for public comment before any final decision is made.
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