Speaking Notes by the Honourable Minister of Mineral and Petroleum Resources
Programme Director,
Chairperson of the Fuels Industry Association of South Africa, Mr Dumisani Bengu,
Captains of Industry,
Team DMPR,
Distinguished Guests,
Let me start by expressing our appreciation to the Fuels Industry Association of South Africa (FIASA) for convening this important meeting.
This Imbizo comes at a critical period for the petroleum sector, both globally and domestically.
The ongoing conflict in the Middle East has once again reminded us that energy security cannot be taken for granted. Events occurring thousands of kilometres away continue to affect fuel prices, supply chains, investment decisions, and economic stability across the globe.
South Africa has not been immune to these developments.
The disruption of global energy supply chains has contributed to increased volatility in international fuel markets and placed pressure on fuel-importing countries, including our own.
Yet, despite these challenges, South Africa has maintained fuel supply stability.
I would, therefore, like to thank the industry for working with government to ensure that fuel supplies remain sufficient to meet domestic demand. This collaboration demonstrates what can be achieved when we work together towards a common objective.
However, while we acknowledge this progress, we must also confront areas of concern.
We remain troubled by incidents where some operators increased fuel prices ahead of official price adjustments. While these actions were limited to a minority of participants, they undermined public confidence and tarnished the reputation of the broader industry.
Compliance with regulatory requirements is not optional. It is fundamental to maintaining public trust and ensuring a level playing field for all participants.
Equally concerning is the continued adulteration of fuel products, particularly the illegal blending of diesel with illuminating paraffin.
This criminal activity undermines the rule of law, distorts markets, damages equipment, compromises consumer confidence, and poses significant risks to our economy and national security.
Government continues to work closely with law enforcement agencies to combat this illicit trade. However, we cannot succeed alone. Industry cooperation remains essential in identifying offenders and strengthening compliance throughout the value chain.
This Imbizo provides us with an opportunity to engage frankly about the future of our industry and to collectively shape a petroleum sector that remains secure, competitive, sustainable, and responsive to the changing energy landscape.
The theme of this year’s Imbizo, “Embracing the Future of Energy Mobility” could not be more relevant.
As we discuss the future of energy mobility, we must recognise that South Africa’s energy transition is not about abandoning one energy source in favour of another. It is about building a diversified and resilient energy mix that supports economic growth, industrial development, energy security, and environmental sustainability.
Conventional fuels will continue to play an important role in our economy for decades to come. At the same time, emerging energy sources must be developed and integrated into our energy system.
Within this context, biofuels represent an important opportunity. The development of a sustainable biofuels industry has the potential to support agricultural development, create employment opportunities in rural communities, stimulate new investment, and contribute meaningfully to the reduction of greenhouse gas emissions.
We have engaged with the Minister of Agriculture, who has expressed strong support for the biofuels programme. This gives us confidence about the availability of feedstock required to support the industry’s growth.
The publication of the regulated biofuels price last year marked an important milestone in providing regulatory certainty and creating conditions conducive for investment.
We now look to the industry to partner with government in developing this strategic sector and ensuring its long-term success.
Programme Director, a modern and competitive petroleum industry requires a modern regulatory framework.
For this reason, we continue to advance the Petroleum Products Bill (PPB), which forms part of our broader programme for reform and modernise the downstream petroleum sector.
The Bill seeks to strengthen regulation, support economic transformation, promote cleaner fuel standards, improve market efficiency, and provide greater certainty for investors. The legislation is currently progressing through Cabinet processes before being submitted to Parliament for consideration and adoption.
Similarly, the implementation of the Upstream Petroleum Resources Development Act (UPRDA) marks a significant milestone in the development of South Africa’s oil and gas sector.
Whereas the publication of the regulations took longer than originally anticipated, we are pleased to report that the extensive stakeholder submissions have been fully considered, and that the regulations are now ready for publication and implementation.
Together, the Act and its regulations will establish a dedicated regulatory framework for the upstream petroleum sector, that is distinct from mining, thereby creating a more appropriate and investment friendly environment for oil and gas development.
Ladies and gentlemen, energy security remains one of government’s foremost priorities, and the petroleum industry remains a strategic pillar of our economy.
In 2024, the Department commissioned a comprehensive vulnerability assessment of South Africa’s strategic petroleum stocks. The study identified several areas requiring urgent attention, including the need to strengthen stockholding arrangements and increase domestic refining capacity.
In response, we have developed the draft Strategic Petroleum Stocks Policy, which is now ready for Cabinet consideration prior to publication for public comment.
The policy proposes a mixed stockholding model under which the South African National Petroleum Company (SANPC), will maintain strategic reserves equivalent to 60 days of net imports in both crude oil and refined products.
This represents a major step towards strengthening South Africa’s resilience against future supply disruptions.
We are equally encouraged by developments at Island View. With the issue of leases now finalised by the Minister of Transport, long-term tenure has been secured.
This removes a major obstacle to investment and creates certainty for infrastructure development and expansion within this critical logistics hub.
The geopolitical disruptions we continue to witness have exposed the risks associated with excessive dependence on imported refined petroleum products.
If we are serios about improving our energy security, reducing our vulnerability to external shocks, and strengthening our economic sovereignty, then we must accelerate exploration and development of our own oil and gas resources.
South Africa cannot indefinitely remain a price taker in global energy markets. We must position ourselves to become producers where commercially viable resources exist.
The SANPC will play an important role in this regard. While the SANPC Bill is currently before Parliament, the company is already operational and actively participating in the sector.
We invite you to partner with it in supporting the development of local refining capacity and advancing exploration activities that can unlock South Africa’s petroleum potential.
The recent pressure on paraffin prices should also encourage us to accelerate the growth of the Liquefied Petroleum Gas (LPG) market. LPG offers households a cleaner, more efficient, and often more affordable alternative for cooking and heating.
Our mission is to ensure that every South African household has access to LPG as a viable energy option.
Achieving this objective will require coordinated investment in infrastructure, storage, distribution networks, and market development. Industry participation will be crucial.
As we chart the future of the South African petroleum sector, we must also think beyond our borders.
South Africa occupies a strategic position within the Southern African Development Community (SADC). Our infrastructure, logistics capabilities, and market scale place us in a unique position to serve as a regional energy hub.
We should, therefore, strengthen regional cooperation, expand fuel trade opportunities, and pursue joint sourcing arrangements that benefit both South Africa and our neighbouring countries.
In conclusion, let us use this Imbizo to identify practical solutions, strengthen partnerships, unlock investment, and build a petroleum sector that is secure, competitive, transformed, and capable of supporting South Africa’s developmental objectives.
Working together as government and industry, we can ensure that the future of energy mobility is not something we merely react to, but something we actively shape.
I thank you.
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