South Africans are benefiting from the lowest petrol prices in about four years following recent fuel price cuts, but the African Energy Chamber says the relief masks deeper structural risks tied to the country’s reliance on imported fuels and declining domestic gas supply.
According to a release distributed by APO Group, pump prices have fallen by around 65 cents per litre for petrol and more than 50 cents for diesel, driven by softer global crude prices and a stronger rand. The local currency gained nearly 13% against the U.S. dollar in 2025, helping reduce import costs.
Despite the short-term relief, the Chamber noted that South Africa imports roughly three-quarters of its liquid fuel needs due to shrinking refining capacity, leaving the country exposed to exchange-rate volatility and international market movements. Strategic fuel reserves currently cover less than a month of supply.
The release warned of a potential “gas cliff” as early as 2026, as Mozambican pipeline supplies decline and domestic production remains limited. Interim supply extensions are expected to bridge demand until new LNG infrastructure and domestic gas projects come online.
Government plans include a floating storage and regasification unit expected by mid-2026 and a proposed LNG terminal at Richards Bay targeted for 2027, alongside offshore gas exploration in the Orange Basin.
African Energy Week 2026 in Cape Town is expected to spotlight LNG investment, infrastructure partnerships and energy security strategies aimed at closing supply gaps and supporting a balanced energy transition.
