South Africa holds just 8 million barrels in strategic fuel reserves despite having capacity for far more, officials confirm amid global oil market volatility and supply concerns.
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South Africa is holding far less crude oil in its strategic fuel reserves than its available storage capacity, officials confirmed this week, even as global energy markets continue to face volatility driven by geopolitical tensions.
The Department of Mineral and Petroleum Resources (DMPR) said during a media briefing on fuel pricing and supply dynamics on Wednesday that national strategic crude stocks currently stand at approximately 8 million barrels.
This is well below the combined capacity of key Strategic Fuel Fund infrastructure, including the Saldanha Bay terminal, which can accommodate 45 million barrels, as well as the Oiltanking MOGS Saldanha (OTMS) facility under development, with capacity for a further 13.2 million barrels.
“The number that we got from the Strategic Fuel Fund is that we have 8 million barrels of strategic crude stock that is there,” said Raphi Maake, director for fuel pricing mechanism at the DMPR.
The figures were released against the backdrop of renewed uncertainty in global oil markets, with ongoing conflict in the Middle East — a critical supply region — continuing to disrupt trade flows. Shipping through the Strait of Hormuz, a key global oil artery, has also been affected.
Despite this, authorities maintain that South Africa is not currently tapping into its strategic reserves, pointing instead to sufficient global availability of crude and refined petroleum products.
“At the moment, we are not even touching that strategic stock because there is still a lot of fuel available in the international market, outside the Middle East, that is coming into the country,” Maake said.
Government and industry stakeholders have sought to temper concerns about possible shortages, as fuel price pressures and geopolitical instability fuel public anxiety.
The Fuels Industry Association of South Africa (FIASA) and the DMPR have both reiterated that supply conditions remain stable, supported by ongoing monitoring of imports and shipping flows. South Africa consumes between 60 million and 70 million litres of petrol and diesel per day, demand which is currently being met through diversified import sources.
While Middle Eastern suppliers remain important, South Africa has expanded its crude import base to include producers such as Nigeria, Ghana and Angola, alongside newer sources including Brazil. Maake said this broader sourcing strategy has helped reduce vulnerability to disruptions in traditional supply routes.
However, the relatively low level of strategic reserves has raised questions about the country’s buffer capacity should a severe supply shock occur, such as prolonged shipping disruptions or a major escalation in global conflict. Legally, South Africa is expected to maintain the equivalent of roughly two months’ worth of transport fuel in reserve.
Strategic reserves are intended as a safeguard mechanism, allowing governments to stabilise supply and pricing during periods of disruption. With only a small portion of available storage currently utilised, South Africa’s flexibility in responding to a major crisis could be limited.
Maake, however, stressed that current market conditions do not warrant drawing down on reserves, arguing that premature use could weaken long-term energy security.
He also pointed to continued volatility in global oil prices as a key driver of local fuel costs. The Basic Fuel Price (BFP), which tracks import parity pricing, remains central to determining pump prices, alongside domestic taxes and levies.
According to Maake, under-recoveries — where suppliers pay more for fuel than the regulated retail price — are passed through to consumers in later price adjustments. Combined with rising international oil prices, this mechanism is expected to place further upward pressure on fuel costs in the months ahead.
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