Gwede Mantashe: US Tariffs Not Affecting SA Fuel Prices Yet, But Refinery Revival Urgent

Mineral and Petroleum Resources Minister Gwede Mantashe has clarified that the United States’ trade tariffs have not yet affected South Africa’s fuel prices.

Speaking during a National Council of Provinces session on Thursday, Mantashe explained that since South Africa does not export fuel to the US, local prices remain largely influenced by global crude oil prices.

“The local petroleum sector is still mostly dependent on imports,” he said. “The solution is in the discovery and exploitation of our own petroleum products.”

Gwede Mantashe Call for More Exploration Despite Legal Hurdles

Mantashe expressed frustration that ongoing exploration projects are often halted by legal challenges, hindering the country’s energy independence. He noted that projects such as those in the Orange River Basin frequently end up in court.

“At this point in time, every time we touch a petroleum exploration, as we do in the Orange River Basin, we end up in court,” he said. “If the impasse could be resolved, it would guarantee fuel supply and more secure pricing.”

The minister emphasised that the exploration of local petroleum resources remains key to ensuring affordable and reliable energy in the long term.

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Mantashe warned that the decline in South Africa’s refining capacity poses a significant threat to the economy. He highlighted that oil reserves sold during the Covid-19 pandemic have not been replenished, further weakening the country’s energy resilience.

He called for the revival of dormant refineries, saying that restoring them is critical for securing the nation’s fuel supply and stabilising prices. “The only way to secure affordable fuel is through exploration and increasing the country’s refining capacity,” he added.

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