South Africa’s fuel sector is under increasing strain, with more than 140 filling stations struggling to meet demand ahead of anticipated record price increases in April.
Industry data shows that 143 stations ran out of diesel while 136 had no petrol, as motorists rushed to top up their tanks in anticipation of higher prices. This surge in demand has exposed weaknesses in the country’s supply chain, particularly against the backdrop of global energy market instability.
The pressure comes as South Africa, which depends heavily on imported fuel, faces rising costs linked to disruptions around the Strait of Hormuz.
President Cyril Ramaphosa stated that authorities are considering interventions to ease the burden, referencing estimates from the Central Energy Fund that petrol prices could climb by about R5 per litre and diesel by roughly R8 per litre from April 1.
Finance Minister Enoch Godongwana has also raised concerns, attributing the sharp increases to Middle East tensions, elevated global oil prices, and the depreciation of the rand.
According to BusinessTech, some filling stations may be holding back supply in anticipation of selling at higher prices once the increases take effect.
In urban centres such as Johannesburg, where fuel is still accessible, some stations have begun rationing sales, limiting motorists to around 30 litres per vehicle.
Siganeko Magafela, head of security of supply at the Fuels Industry Association of South Africa, explained that distribution systems are struggling to cope. He noted that demand at stations has surged to nearly three times the usual levels.
He added that while fuel remains available at depots, transportation and delivery networks are under pressure, leaving forecourts to deal with the immediate shortages. He expressed confidence that the backlog will eventually be cleared, though it will take time.
Global pressures weigh on local supply
The situation is unfolding amid growing uncertainty in international energy markets. Rising tensions involving Iran and disruptions to the Strait of Hormuz, a key global shipping route for oil, have sent ripple effects through supply chains worldwide.
Further adding to the strain, India recently increased duty charges, a move expected to push fuel prices even higher in South Africa.
Although South Africa sources much of its crude oil from Africa and the Atlantic region, it relies significantly on imported refined fuel from countries such as India, Oman, the UAE, and Saudi Arabia. This dependence leaves the country exposed to global price volatility.
Dr Mark Burke warned that rising fuel costs could have broader economic consequences, including higher transport fares, increased food prices, and slower economic growth. He emphasized the need to shield citizens from these impacts.
Meanwhile, Mineral and Petroleum Resources Minister Gwede Mantashe assured the public that there is no nationwide fuel shortage.
He stated in Parliament that despite geopolitical risks, the country’s fuel supply system remains stable, adding that current challenges are largely driven by panic buying rather than an actual lack of supply.
The situation underscores the vulnerability of many African economies to global energy disruptions, as reliance on imported refined products combined with domestic logistical challenges continues to expose consumers to sudden price shocks.