S. Africa Urged to Expand Oil Refining Capacity to Stabilise Fuel Prices

South Africa must expand its oil refining capacity to protect the country from global shocks and stabilise domestic fuel prices, the Minister of Mineral and Petroleum Resources, Gwede Mantashe, has said.

Speaking at the Southern African Oil and Gas Conference, Mantashe highlighted the urgency of strengthening the nation’s refining infrastructure, noting that a reduction in operational facilities has increased reliance on imported refined fuel.

Several major companies have exited South Africa’s refining sector in recent years, leaving fewer facilities to meet local demand. Mantashe said efforts are underway to revive refineries, including PetroSA, alongside existing operations at Sapref and the Astron Energy Refinery in Cape Town.

The minister warned that without increased refining capacity, controlling fuel prices could become increasingly difficult, affecting both consumers and the broader economy.

Mantashe also criticised what he described as “criminal lobbies” that use legal challenges to delay oil and gas projects, slowing progress despite the country’s significant potential in the sector.

He stressed that if these obstacles are addressed, South Africa’s oil and gas industry could become a major driver of economic growth, creating jobs and boosting energy security.