Minister of Mineral and Petroleum Resources, Gwede Mantashe, has warned that oil prices are likely to rise further if the Middle East conflict continues. He expressed concern about the impact on fuel, which is already expected to increase from 1 April 2026.
The surge in prices has been largely linked to attacks on energy infrastructure in the Strait of Hormuz, situated between northern Iran and southern United Arab Emirates. These attacks reportedly involve joint actions by the United States and Israel, citing Iran’s alleged nuclear program as a threat to both countries.
Speaking at the 5th Annual Southern Africa Oil and Gas Conference in Cape Town on Monday, Mantashe urged stakeholders to develop strategies to mitigate the crisis. “When global fuel prices are rising, what are we going to do? I’ve received about four letters asking how we can mitigate these high costs. To maintain product availability in South Africa, we must increase our oil refining capacity. Many major companies have exited refining, and we need to get those refineries operating. Without this, prices will remain uncontrollable,” he explained.
The Minister also highlighted South Africa’s significant potential in offshore petroleum, with discoveries in the Outeniqua Basin along the southern coast and the Orange Basin off the west coast of South Africa and Namibia. He noted that exploration has been delayed due to opposition from environmentalists and other factors.
Mantashe assured that the country will continue pursuing these resources to achieve a prosperous energy outlook for Africa. He concluded by pledging to accelerate minerals beneficiation initiatives aimed at shielding citizens from the effects of rising oil and gas prices. According to Mantashe, the goal is to mitigate impacts on the cost of living, energy poverty, unemployment, and inequality.
