The department stressed that this strategic reserve is specifically intended for catastrophic events rather than minor operational inefficiencies<\/strong>.<\/p>\n\n\n\n The Minister of Mineral and Petroleum Resources would be the authority empowered to trigger the release of these stocks, the department said.<\/p>\n\n\n\n These triggers would operate on different levels, as determined by the minister.<\/p>\n\n\n\n The policy recommends that the government hold the stock required to cover a total of 90 days of net imports, primarily in the form of crude oil stored at the State-Owned Saldanha Bay facility.<\/p>\n\n\n\n To complement this, the policy introduces a mandatory requirement for licensed manufacturers and wholesalers to maintain an additional 14 days’ refined product stock, such as diesel, petrol and jet fuel.<\/p>\n\n\n\n “This dual responsibility ensures that the state manages long-term strategic security and cushions the economy against global supply chain shocks while the private sector contributes to immediate downstream resilience,” it said.<\/p>\n\n\n\n The governance and funding of this system will be anchored by the new state-owned petroleum company, the South African National Petroleum Company (SANPC).<\/p>\n\n\n\n This new SOE emerged from the merger of SFF, PetroSA, and iGas in 2025.<\/p>\n\n\n\n The department said that South Africa\u2019s petroleum stocks are characterised by insufficient physical reserves, which jeopardise the national petroleum security. <\/p>\n\n\n\n It noted that the closure or conversion of major domestic refineries such as SAPREF and ENGEN into import terminals has shifted South Africa from a crude-importing nation to a finished-product-importing nation.<\/p>\n\n\n\n This has significantly increased the risk of immediate supply shocks.<\/p>\n\n\n\n “This leaves the economy exposed to risks such as fuel supply shortages in emergency situations without a buffer against external shocks and currency fluctuations and short-term supply logistics,” it said.<\/p>\n\n\n\n It added that dependence on long shipping routes and specific maritime chokepoints exposes the economy to an estimated R1 billion in losses for every single day of total fuel unavailability.<\/p>\n\n\n\n It also takes a minimum of 21 days and a maximum of 42 days for imports to reach South African ports of entry.<\/p>\n\n\n\n This is exacerbated by a further 10 -14 days spent on offloading, refining and transporting products from coastal refineries to the inland market.<\/p>\n\n\n\n “This has necessitated a policy shift towards an agile and integrated stock holding model that will provide the necessary safeguards during emergencies,” it said.<\/p>\n\n\n\n Regarding the involvement of the private sector, the department said there has been a distinct lack of a mandatory stockholding obligation on these companies.<\/p>\n\n\n\n This has left the state as the sole guarantor of supply during disruptions, and “this is a burden the state cannot carry alone, especially given fiscal constraints,” it said.<\/p>\n\n\n\n The draft policy can be read below.<\/p>\n\n\n\nTrigger level<\/th> Category<\/th> Description \/ Threshold<\/th> Primary Action<\/th><\/tr><\/thead> Level 1<\/strong><\/td> Supply Alert<\/td> Loss of 20% of national refined product supply (e.g., refinery outage or single port closure) for more than 14 days.<\/td> Voluntary industry stock sharing and SANPC readiness audit.<\/td><\/tr> Level 2<\/strong><\/td> Supply Disruption<\/td> Loss of 40% of national supply with total depletion of commercial industry mandatory stocks, the 21day safety buffer.<\/td> Initial drawdown, this is a restricted release of stocks to essential services and key economic hubs.<\/td><\/tr> Level 3<\/strong><\/td> National Emergency Declared by Minister<\/td> Severe global supply shock or total failure of the import value chain impacting more 50% of supply.<\/td> Mass drawdown, this is a wide market release and implementation of fuel ration.<\/td><\/tr> Economic<\/strong><\/td> Price Stability<\/td> Unprecedented price volatility reaching $145 per barrel threatening GDP growth.<\/td> This is a strategic sale of products in a competitive auction<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n South Africa needs reserves<\/h2>\n\n\n\n
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