Mantashe’s proposed oil stockpile: what the draft policy says and public worries

The government has published a draft policy to create a regulated national oil reserve designed to protect South Africa from supply shocks. The framework would set a 60-day state buffer and require licensed wholesalers and importers to hold private stocks, while allowing public comment through the consultation period.

What the draft policy would require

The document proposes a dual-obligation model. Under it, the South African National Petroleum Company (SANPC) would manage state strategic stocks sufficient for 60 days of cover, split roughly 70% crude and 30% key refined products and stored in state-owned facilities at Saldanha and Milnerton. The draft also requires licensed wholesalers and importers to keep 21 days of mandatory private stocks, with the same 70/30 crude-to-finished-product mix.

Together the state and private holdings are described in the policy as providing a combined buffer of 60+ days to allow time for procurement and shipment of replacement volumes during an emergency. The Minister retains the authority to declare an emergency and release stock.

Why the reserve is being proposed

The department says the proposal aims to maintain a physical buffer that can be released during a declared state of emergency. The draft cites vulnerabilities it seeks to address, including the loss of domestic refining capacity and regulatory gaps in private stockholding obligations.

The policy notes that South Africa currently consumes 600,000 barrels of oil per day and that existing reserve stocks would cover that demand for 14 days. The department estimates that a situation in which the country runs out of oil and petroleum could cost the economy about R1 billion per day in GDP.

Costs, timing and the consultation process

The draft says National Treasury and the SANPC will develop financing instruments to support the scheme. Written comments on the policy must reach the Director-General of the Department of Mineral and Petroleum Resources within 30 days of publication, with the consultation period closing on 8 August 2026.

Public concerns and industry perspective

The draft acknowledges supply-chain risks such as long lead times for imports and maritime chokepoints. It also points to the time required to move product from coastal refineries to inland markets, saying that currently 10–14 days are spent on offloading, refining and transporting products to inland consumers.

In an interview quoted in the consultation materials, Henry Gilfillan of Africa International Advisors said building and maintaining the infrastructure for these reserves “will inevitably affect consumers,” and characterised the reserve as an “insurance policy.”

Background details flagged in the draft

• The draft notes this would be the first increase to strategic oil reserves since crude was stockpiled in the 1970s under the apartheid government.
• It records the closure of major refineries, citing that South African Petroleum Refineries (SAPREF) in Durban closed in 2022 and was later sold to the Central Energy Fund for R1.

The consultation paper frames the mandatory stockpile as a response to global supply uncertainty and domestic vulnerabilities; it sets out roles for the SANPC, National Treasury and private sector participants while inviting public comment before finalisation.