South Africa’s fuel infrastructure could come under significant strain if the country’s economic growth surpasses 3%, according to the Department of Mineral and Petroleum Resources.
The warning was issued by Acting Deputy Director-General for Petroleum and Petroleum Products Tseliso Maqubela during the Fossil Fuel Industry Association of South Africa Imbizo held in Sandton, where industry stakeholders gathered to discuss the future of the country’s energy and fuel sectors.
Maqubela acknowledged that while South Africa’s current fuel system is capable of meeting existing demand, the country may face serious challenges if economic activity accelerates significantly.
“We find ourselves currently in not an ideal situation. We basically can manage for the demand that is there currently,” Maqubela said.
“I think if there were to be an uptick in excess of 3% in GDP growth, then we will be stretched to the limit, all of us. And I think that’s what we don’t want to find ourselves in.”
The comments have renewed concerns about South Africa’s long-term fuel security as the country becomes increasingly reliant on imported refined petroleum products following the closure of several domestic oil refineries in recent years.
Industry experts have previously warned that the decline in local refining capacity leaves South Africa more vulnerable to global supply disruptions, shipping delays and international price fluctuations.
Maqubela said government is taking steps to address these concerns through the development of a Petroleum Sector Development Plan, which will serve as the country’s first comprehensive roadmap for the fuels industry.
The plan is expected to assess South Africa’s current fuel infrastructure, identify future supply requirements and determine what investments will be needed to support economic growth while maintaining energy security.
The initiative comes as policymakers seek to balance growing energy demand with the need for reliable fuel supplies in an economy that remains heavily dependent on petroleum products for transportation, logistics and industrial activity.
With government targeting stronger economic growth in the coming years, the capacity of South Africa’s fuel infrastructure is likely to become an increasingly important issue for both policymakers and industry leaders.
The Petroleum Sector Development Plan is expected to play a key role in determining how the country expands and modernises its fuel supply network to meet future demand while reducing the risk of supply shortages.