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Fuel prices tied to blockages

by Thaabit Kamaar
Image Source: SABC News

Local – Mineral and Petroleum Resources Minister Gwede Mantashe has blamed environmental lobby groups for standing in the way of South Africa’s oil and gas sector, arguing that ongoing opposition to exploration projects is deepening energy poverty and hampering economic growth.

Speaking at the Southern Africa Oil and Gas Conference, Mantashe said the country’s significant offshore petroleum potential, including major gas discoveries in the Outeniqua Basin and promising prospects in the Orange Basin, remained largely untapped because of sustained resistance from green advocacy groups.

“One of the biggest challenges facing the development of our petroleum sector remains the persistent opposition from environmental lobby groups who continue to block every oil and gas development initiative in our country,” he said.

Constitutional Mandate

The minister argued that access to domestic petroleum resources was not at odds with constitutional obligations, but demanded by them.

The Constitution calls for ecologically sustainable development alongside justifiable economic and social development, and Mantashe said energy poverty was itself a human rights concern.

“The truth is that rising oil and gas prices have a direct ripple effect on the cost of living,” he said.

“The lack of access to these resources has an even greater impact, as it can lead to energy poverty, rising unemployment, and the further entrenchment of poverty and inequality.”

Fuel Prices Under Pressure

The blockage of domestic petroleum development is compounding the strain on consumers already grappling with volatile fuel prices.

Heavily reliant on imported refined petroleum products, South Africa remains exposed to global market shocks, among them the ongoing Middle East conflict, which has disrupted supply chains and caused fuel under-recoveries to swing sharply.

Mantashe warned that without domestic production, substantial price increases were unavoidable.

“Countries that rely heavily on imports of refined petroleum products remain particularly vulnerable to global market shocks,” he said.

“South Africa must not stand on the sidelines while the global energy landscape evolves and while our neighbouring countries unlock the value of their resources.”


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