Top CEO raises the alarm over South Africa’s petrol and diesel reserves

Sygnia CEO Magda Wierzycka has asked the government to give an update on South Africa’s petrol, diesel, and jet fuel storage levels. 

In a recent social media post, Wierzycka warned of the potential for food chain disruption, elevated load-shedding, and water supply issues that can come as a result of the global energy shock caused by the conflict in the Middle East. 

“Time has come for an update on South Africa’s petrol, diesel, and jet fuel. We have no strategic reserves. What is next and by when?” Wierzycka asked. 

“Food chain disruption, load-shedding, water supply issues? How soon? How many weeks?”

Wierzycka’s comments come after the apparent reclosure of the Strait of Hormuz by Iran after the United States refused to lift its blockade on ships travelling to or leaving Iranian ports. 

This dashed hopes of a quick end to the standoff following the announcement of a potential ceasefire between US-Israeli forces and Iran, as well as peace between Israel and Lebanon. 

Wierzycka is not the first business leader to warn of the potential for fuel shortages in South Africa, with Remgro CEO Jannie Durand raising the alarm at the end of March. 

Durand said the conflict in the Middle East is keeping him up at night, with it lasting longer than he thought and its consequences potentially being severe for the South African economy. 

“I think we can already see what is happening in South Africa. People are scrambling a bit. We are going to have some fuel shortages,” Durand said. 

“As you are aware, 50% of the refined fuel we use comes from that region in one way or another that we import. So, it is a significant amount, and you cannot just get supplies from other areas.”

“We also only have one operating refinery to supply Gauteng, so that is a problem as well if you have to refine oil to get fuel products.”

Durand warned that South Africa is not in a great place to weather the storm, with the government and households having minimal financial resources to buffer against the impact. 

Despite these warnings from business leaders, the government has repeatedly said that South Africa will not experience fuel shortages, with its supply being secure. 

The government has attributed reports of dry fuel stations across South Africa to logistics constraints caused by panic buying and fuel hoarding. 

Mineral and Petroleum Resources Minister Gwede Mantashe previously said South Africa will be spared from the worst effects of the conflict thanks to its ties to the Iranian regime. 

Despite a blockade imposed by the United States on ships leaving Iranian ports, BusinessDay reported that Mantashe has doubled down on this claim. 

“There is no shortage of petrol, oil, or diesel in the country. It is just expensive. That is the function of the price,” Mantashe explained. 

“In terms of supply, it is available because we are not an enemy of Iran. That is what saved us. The issue is price, and that is not in our control.”