South Africa refinery closures cost R76bn in oil imports

The South African Reserve Bank estimates that the country could have reduced its oil-import bill by R76 billion if more domestic refinery capacity had remained operational. According to an economic note, petroleum-import spending would have averaged 6.1% lower in the four years leading up to 2024 if refined-product imports had been limited to 25% of the total supply.

Since 2019, refinery closures have reportedly reduced petroleum-related manufacturing output by approximately 20% and displaced an estimated 5,400 direct and indirect jobs. South Africa’s refining capacity has halved over the last decade, leaving the country dependent on imports for more than half of its fuel demand. This reliance increases vulnerability to international price volatility, shipping disruptions, and exchange rate fluctuations.

Currently, only two crude-oil refineries are active: Sasol’s Natref plant and Astron Energy’s Cape Town refinery, with a combined capacity of roughly 208,000 barrels per day. The Central Energy Fund has expressed intentions to rebuild the Sapref refinery near Durban, which was idled following flood damage in 2022, targeting a capacity of 400,000 barrels per day.