South Africa Urged To Accelerate Domestic Oil and Gas Development To Strengthen Energy Security

South Africa needs to accelerate the development of its domestic oil and gas resources in order to enhance energy security, according to Minister of Mineral and Petroleum Resources Gwede Mantashe.

Mantashe, who was addressing the Southern Africa Oil and Gas Conference in Cape Town, said that the development of oil and gas resources locally is the most sustainable solution for ensuring stability in the country’s fuel market, as well as curbing the effects of rising fuel prices. Mantashe’s statement comes in response to a warning from the Central Energy Fund that South African motorists may soon face a massive hike in fuel prices, with petrol prices possibly rising by as much as $0.23 per litre, while diesel may cost as much as $0.40 per litre.

Mantashe noted that geopolitical tensions and disruptions in global energy supply chains continue to expose the vulnerability of countries heavily dependent on imported refined petroleum products. South Africa imports a significant share of its fuel requirements, leaving domestic prices highly sensitive to international oil market volatility.

In the short term, the government is maintaining close engagement with industry stakeholders to secure fuel supplies and avoid disruptions. However, Mantashe stressed that the country’s long-term energy resilience depends on unlocking its own petroleum resources.

South Africa holds considerable untapped potential in offshore basins such as the Outeniqua Basin and the Orange Basin. The Orange Basin has attracted global industry attention following major oil discoveries in neighbouring Namibia, raising expectations that similar geological formations could extend into South African waters.

Despite this potential, the country’s upstream sector has faced delays due to regulatory uncertainty and legal challenges, including opposition from environmental organisations. Mantashe acknowledged these concerns but argued that responsible resource development must balance environmental protection with economic growth.

To improve the investment climate, the government is implementing reforms, including the Upstream Petroleum Resources Development Act, which aims to create a clearer regulatory framework for exploration and production. Authorities are also working to modernise the Petroleum Products Act and establish the South African National Petroleum Company to strengthen state participation in the sector.

Mantashe added that expanding refining capacity will also be critical. South Africa currently relies on facilities such as the Natref refinery, the Astron Energy refinery and the Sasol Secunda coal-to-liquids plant to meet part of its fuel demand.

While fuel price volatility may persist amid global tensions, Mantashe said strengthening domestic production remains key to improving South Africa’s long-term energy security.