{"id":853705,"date":"2026-03-14T07:00:00","date_gmt":"2026-03-14T05:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=853705"},"modified":"2026-03-13T16:34:54","modified_gmt":"2026-03-13T14:34:54","slug":"one-government-decision-that-could-end-in-disaster-for-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/energy\/853705\/one-government-decision-that-could-end-in-disaster-for-south-africa\/","title":{"rendered":"One government decision that could end in disaster for South Africa"},"content":{"rendered":"\n

The government’s decision not to expand or modernise the country\u2019s fuel storage could lead to disastrous consequences for South Africans and the broader economy.   <\/p>\n\n\n\n

As a result of wasted years of inaction, South Africa faces a real threat of severe energy insecurity due to the conflict in the Middle East. <\/p>\n\n\n\n

This is the feedback from Lungile Mashele, an energy economist, who is a specialist in energy and infrastructure at the Public Investment Corporation and a member of the board of the National Transmission Company of South Africa.<\/p>\n\n\n\n

She warned that South Africa\u2019s leadership has failed to take meaningful steps to protect the country from the risks associated with volatile global energy markets.<\/p>\n\n\n\n

\u201cThe weaponisation of energy is not some distant academic threat; it is a direct, menacing danger and should be treated as such,\u201d Mashele wrote in an opinion piece<\/a> published on Business Day.\u00a0<\/p>\n\n\n\n

Mashele pointed to historical examples such as the 1973 oil embargo to illustrate how geopolitical tensions can cripple economies.<\/p>\n\n\n\n

\u201cThe 1973 oil embargo crippled the world. Fuel shortages, soaring prices and rampant inflation showed that energy is not just a commodity but a powerful weapon in the hands of those who control it,\u201d she said.<\/p>\n\n\n\n

\u201cYet astonishingly, South Africa remains as exposed as ever, its leadership having done next to nothing to shield its people from the consequences,\u201d Mashele said.<\/p>\n\n\n\n

She warned that South Africa is particularly vulnerable as tensions threaten vital energy corridors such as the Strait of Hormuz.<\/p>\n\n\n\n

\u201cEven the possibility of disruption sends oil and gas prices soaring, yet South Africa remains passive.\u201d<\/p>\n\n\n\n

A major concern is the country\u2019s shrinking refining capacity. Over the past several years, South Africa has closed most of its oil refineries, slashing domestic processing capacity from more than 700,000 barrels per day to just over 100,000 barrels.<\/p>\n\n\n\n

Building reserve capacity is an urgent national priority<\/h2>\n\n\n
\n
\"\"<\/a>
Energy economist Lungile Mashele.<\/em><\/figcaption><\/figure><\/div>\n\n\n

Mashele said this has left the country heavily dependent on imported refined fuel and exposed to fluctuations in global markets.<\/p>\n\n\n\n

\u201cSouth Africa\u2019s energy crisis isn\u2019t just misfortune; it\u2019s the direct result of reckless, politicised and shortsighted decisions,\u201d she said.<\/p>\n\n\n\n

\u201cThe government\u2019s failure to expand or modernise fuel storage has left South Africa without adequate reserves, exposing the nation further to market volatility.\u201d<\/p>\n\n\n\n

She warned that, as a result, local fuel prices are dictated by international developments rather than domestic policy.<\/p>\n\n\n\n

Mashele said the current surge in energy prices could have far-reaching economic consequences, potentially pushing the global economy toward recession, and South Africa will bear the brunt.<\/p>\n\n\n\n

She stressed that South Africa would be hit with high inflation and soaring electricity, food and fuel costs that choke every household and small business.<\/p>\n\n\n\n

She also warned that building a resilient energy system should be an urgent national priority. \u201cIf we want to protect our country, economy and future, we must act decisively now.\u201d<\/p>\n\n\n\n

Despite these warnings, the Department of Mineral and Petroleum Resources has reassured the public that there is currently no immediate risk of fuel shortages.<\/p>\n\n\n\n

The department said in a statement<\/a> that it remains in continuous contact with oil companies to ensure supply stability.<\/p>\n\n\n\n

It added that local producers such as NATREF, Astron Energy, and Sasol\u2019s Secunda coal-to-liquids plant are still operating.<\/p>\n\n\n\n

The department also said that much of the crude oil used locally is sourced from West Africa and other parts of the continent, reducing direct exposure to Middle Eastern supply routes.<\/p>\n\n\n\n

Astron Energy\u2019s refinery is currently offline due to planned maintenance, but the company has secured imports to compensate for the temporary shutdown.<\/p>\n\n\n\n

\u201cUnfortunately, the continued rise in international crude oil prices is expected to result in higher fuel prices at the pump from April 2026,\u201d the department said.<\/p>\n\n\n\n

\u201cThe under-recovery on fuel prices has been fluctuating since the onset of the conflict, and the department will continue to monitor the situation closely.\u201d<\/p>\n\n\n\n

\u201cFurther updates will be provided in due course ahead of the official April fuel price adjustments.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

An energy economist warned that years of government inaction have left the country dangerously exposed to rising prices and potential shortages.<\/p>\n","protected":false},"author":92,"featured_media":781707,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9874],"tags":[21264,20686,853],"class_list":["post-853705","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-brend-crude-oil","tag-department-of-mineral-and-petroleum-resources","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/853705","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=853705"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/853705\/revisions"}],"predecessor-version":[{"id":853717,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/853705\/revisions\/853717"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/781707"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=853705"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=853705"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=853705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}