South Africa has unveiled plans to build a strategic oil reserve of 36 million barrels, its largest fuel stockpile since the apartheid era.
This comes as the country moves to strengthen energy security against global supply disruptions and rising geopolitical risks. Tensions in the Middle East continue to threaten crude oil shipments through the Strait of Hormuz, a critical global energy corridor.
Under a draft Strategic Petroleum Stocks Policy released for public consultation, the government would maintain strategic reserves equivalent to 60 days of national fuel demand. Licensed fuel wholesalers and importers would also be required to hold commercial reserves covering an additional 21 days of consumption. Together, the measures would create a combined emergency stockpile of about 81 days, significantly improving the country’s ability to withstand supply shocks.
The proposed reserve would comprise 70% crude oil and 30% refined petroleum products, including diesel and jet fuel.
Government-owned stocks would be stored at the Saldanha Bay and Milnerton storage facilities and released only during a declared national emergency caused by severe supply disruptions or other catastrophic events.
The initiative marks the first major expansion of South Africa’s strategic petroleum reserves since the 1970s, when the apartheid government built underground storage facilities at Saldanha Bay. Despite having storage capacity for about 45 million barrels, the country currently holds only around eight million barrels of strategic crude, leaving it increasingly exposed to disruptions in global energy markets.
The proposal reflects growing concerns over South Africa’s dependence on imported fuels. The country has lost roughly half of its domestic refining capacity in recent years following the closure of several refineries, increasing its reliance on imported petroleum products to meet annual consumption of about 27 billion litres.
Authorities said the new policy would establish a mandatory stockholding regime, replacing the largely voluntary framework that has existed for decades. Officials believe the revised approach will improve national preparedness, reduce the risk of fuel shortages and enhance the country’s resilience during periods of international market volatility.
The move also aligns South Africa more closely with international energy security practices, where governments and private companies maintain strategic petroleum reserves to cushion their economies against supply interruptions. The renewed focus on stockpiling follows months of volatility in global oil markets, with disruptions to Middle East shipping routes highlighting the vulnerability of fuel-importing nations.
If adopted after the public consultation process, the policy would represent one of the most significant reforms to South Africa’s fuel security framework in decades.
Beyond protecting consumers from supply shocks, the expanded reserve is expected to strengthen the country’s energy resilience, support economic stability and reduce the risk of severe fuel shortages during future global crises.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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