Faith Nyasuguta
South Africa, one of Africa’s wealthiest nations, is facing a deepening energy crisis as nearly half of its oil-refining capacity lies idle. Once a proud producer of refined petroleum products, the country has seen its capacity sliced in half over the past five years, crippled by accidents and chronic underinvestment.
Today, South Africa relies heavily on fuel imports to stay afloat. According to state-owned logistics firm Transnet SOC Ltd., over 60% of the country’s fuel demand is now met by imports. In just the first quarter of 2025, the nation brought in 4.2 million tons of refined petroleum products. That figure is expected to rise to a staggering 15.5 million tons by year’s end, almost double what Kenya is projected to import and more than twice Nigeria’s total.
The dramatic rise in imports stems from a cascade of refinery shutdowns. Sapref, the country’s largest refinery with a daily output of 180,000 barrels, is offline. The plant was acquired by South Africa’s Central Energy Fund (CEF) after Shell and BP exited. Engen’s refinery, which used to pump 120,000 barrels daily and is now owned by Vitol, is also shuttered.
Sasol’s Natref refinery, responsible for 108,000 barrels per day, is currently down due to an outage. PetroSA’s gas-to-liquid facility, producing 45,000 barrels a day, has also gone dark.
That leaves just two major refineries still in operation. Sasol’s Secunda facility, running on coal and gas, continues to produce about 150,000 barrels daily. Glencore’s Astron Energy refinery contributes another 100,000 barrels per day. Combined, they now make up less than half of South Africa’s former refining output.
In an effort to revive domestic capacity, the government stepped in last year to buy the idle Sapref refinery from Shell and BP. However, restarting operations will take significant time and investment.
In the meantime, global energy traders are stepping into the gap. Swiss commodities giant Gunvor is among the companies shortlisted to acquire Shell’s retail fuel network in the country, showcasing South Africa’s growing dependence on international firms to meet basic energy needs.
The sharp decline in local refining has major implications, not just for energy security but also for jobs, the economy and South Africa’s role in regional fuel markets. Without urgent reforms, the country may find itself even more vulnerable to global price shocks and supply chain disruptions.
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