South Africa proposes compulsory fuel stocks to preempt crises
South Africa is proposing a new policy requiring both state and private sectors to maintain mandatory fuel reserves to mitigate supply chain disruptions. The plan aims to bolster energy security by requiring wholesalers to hold 21 days of stock and the state to hold 60 days.
Why it matters
Energy security is critical for South Africa's economy, especially given global supply chain volatility and the country's declining domestic refinery capacity.
CAPE TOWN, July 13 (Reuters) – South Africa is proposing a revamp of its strategic fuel storage capability requiring mandatory reserves from both the state and private sector to mitigate supply crises, a policy document showed.
Global energy supplies and prices have been under pressure for months due to an ongoing crisis in the Middle East that has choked off the Strait of Hormuz, a key oil and liquefied natural gas transit route.
The proposals, outlined in a document from the Department of Mineral and Petroleum Resources, would make it mandatory for all licensed oil and fuel wholesalers and importers to hold 21 days’ worth of stocks, with 70% allocated to crude oil and the remainder to refined products such as diesel or jet fuel.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in