Refinery Closures Cost South Africa 76 Billion Rand

The South African Reserve Bank reported that the closure of domestic oil refineries cost South Africa approximately 76 billion rand in additional oil-import expenses between 2021 and 2024. According to the bank's economic notes, the import bill would have been 6.1% lower on average if refined petroleum imports had remained capped at 25%.

This structural decline in refining capacity resulted in the loss of 5,400 jobs and increased national vulnerability to currency volatility, shipping disruptions, and global price shocks. These pressures were intensified by conflicts in the Middle East and Iran, which pushed fuel prices to record levels and contributed to a 205 billion rand trade deficit in the second quarter of 2026.

In response to the crisis, the Central Energy Fund announced plans to triple local crude processing. These efforts include the reconstruction of the Sapref refinery in KwaZulu-Natal, which was disabled by floods in 2022. Currently, only two operational crude-refining facilities remain in the country: the Natref facility operated by Sasol and the Astron Energy plant in Cape Town.