Gwede Mantashe, the Minister of Minerals and Petroleum Resources. (Photo: X)
The government is constantly in talks with suppliers to obtain fuel amid the conflict in the Middle East.
Gwede Mantashe, the minister of minerals and petroleum resources, explained on Monday at the Southern African oil and gas conference in Cape Town that the government does not want to touch South Africa’s strategic oil reserves at this stage – hence the discussions with fuel suppliers.
According to Mantashe, “all possible sources of supply” are currently being investigated.
The minister indicated at the conference on Monday that the conflict in the Middle East is causing increased geopolitical tension, which is creating great uncertainty and volatility in the global oil markets.
South Africa’s discussions with suppliers are currently aimed at ensuring uninterrupted fuel availability in the local market.
“The reality is that significant fuel price increases are inevitable. Countries that rely heavily on the import of refined petroleum products remain particularly vulnerable to global market shocks,” Mantashe said on Monday.
The minister also emphasized that rising oil prices have a direct ripple effect on the cost of living.
“The lack of access to these resources has an even greater impact.”
Maroela Media previously reported that the conflict between Iran, the US and Israel has escalated dramatically, with shipping through the Strait of Hormuz virtually at a standstill and oil prices soaring by around 40%.
This strait is normally used for about one fifth of the world’s oil supply. The disruption caused oil prices to rise dramatically and put global markets under pressure.
Gwede Mantashe, the Minister of Minerals and Petroleum Resources. (Photo: X)
‘SA must utilize its resources’
Mantashe said in his speech at the conference on Monday that South Africa cannot afford to remain poor while the country has abundant natural resources.
“We need to utilize these resources.”
Domestic production is currently the most sustainable long-term solution, according to Mantashe. “But this can only be achieved through exploration and responsible exploitation of our own petroleum resources.
Environmental groups’ continued opposition to the exploration and exploitation of petroleum resources nevertheless remains one of the biggest challenges.
According to Mantashe, environmental groups are blocking almost every oil and gas development initiative in South Africa.
“It is against this background that our government continues to reform its legislative framework to promote the petroleum sector so that it can make a significant contribution to South Africa’s economy,” Mantashe said on Monday.
“The bill on the development of upstream petroleum resources is very important in this regard,” he said.
According to Mantashe, this law not only separated petroleum from mining legislation, but also established an enabling regulatory framework aimed at accelerating the exploration and production of the country’s petroleum resources.
The minister explained that regulations surrounding the law would initially be published by last September. “However, extensive submissions from industry stakeholders required further consideration.”
These submissions have since been considered and regulations for implementation will be published by the end of this month, according to Mantashe.
The minister further said that his department is determined to ensure that South Africa’s petroleum resources are developed in an “orderly, responsible and environmentally sustainable manner”.
“We must act decisively, responsibly and in the national interest to unlock the full potential of our petroleum sector.”