By Dylan Bettencourt
- Gwede Mantashe says US trade issues are not behind rising fuel prices in South Africa, but imported oil costs are.
- The minister says local oil drilling and restarting old refineries are the only real ways to bring prices down.
Trade issues with the United States are not yet pushing up fuel prices in South Africa, says Mineral and Petroleum Resources Minister Gwede Mantashe.
He told the National Council of Provinces that local fuel prices are mainly affected by the global cost of crude oil, not by US tariffs.
But Mantashe warned that South Africa depends too much on imported fuel. He said the country needs to produce its own oil and restart its old refineries to cut costs in the long run.
“The only way to bring prices down is to produce our own fuel,” Mantashe said.
He said new oil exploration projects, like those in the Orange River basin, are often stopped by court challenges. “Every time we touch a petroleum exploration… we end up in court,” he said.
According to Mantashe, South Africa’s oil reserves were sold off during the Covid-19 pandemic and have not been replaced. That means the country has no backup if global oil prices shoot up again.
He said fixing this will need quick action. Dormant refineries must be revived, and local oil production must increase.
Energy experts agree that local production could help reduce dependence on imports but warn that new projects must follow environmental rules.
Pictured above: Mineral Resources Minister Gwede Mantashe.
Image source: @GwedeMantashe1
