The petroleum industry in South Africa comprises the exploration, importation, refining, storage, distribution, and retailing of petroleum products in South Africa. The country has historically relied heavily on imported crude oil, while domestic production has been supplemented by synthetic fuel produced from coal and natural gas. The industry supplies gasoline, diesel, jet fuel, liquefied petroleum gas, fuel oil, bitumen, marine fuels, and other petroleum products to the domestic market.
As of September 2026, South Africa has two crude oil refineries in operation, the Astron Energy Refinery in the Western Cape and the Natref Refinery in the Free State. Together, they have a capacity of 208,000 barrels per day.
In 2022, the petroleum industry contributed 3% to South Africa's GDP.
The country has seven major petroleum retail chains, with a combined 4,000 locations as of 2025. The two largest companies by number of outlets – Engen Petroleum and Astron Energy, are headquartered in Cape Town, with the other five headquartered in the City of Johannesburg. They support a thriving automotive industry and robust logistics industry, including approximately 8 million passenger vehicles and around 3 million trucks and delivery vehicles.
The petroleum industry as a whole is regulated by the Department of Mineral Resources and Energy (DMRE), and the development of industry assets is managed by the Central Energy Fund.
The country has a network of around 2,500km of fuel pipelines, owned and operated by state-owned Transnet. Petroleum storage and loading facilities are regulated by the National Energy Regulator of South Africa (NERSA). South Africa has a total of 2.46 billion liters of licensed storage capacity for diesel, gasoline, and jet fuel. The country also has crude oil storage facilities managed by the Strategic Fuel Fund, with a capacity that is not publicly known.
History
Early development
Petroleum products were imported into South Africa from the late 19th century, initially primarily as kerosene and other fuels. The country's dependence on imported petroleum increased as motorization and industrialization expanded during the first half of the 20th century. The national government subsequently promoted domestic fuel production to reduce dependence on imported petroleum and exposure to external supply disruptions.
Establishment of the refining industry
South Africa's modern refining industry began in 1954, when US company Mobil commissioned SA's first crude oil refinery in Durban. This was followed by the commissioning of the SAPREF Refinery in Durban in 1963, the Calref Refinery (now the Astron Energy Refinery) in Cape Town in 1966, and the Natref Refinery in Sasolburg, Free State in 1971. The development of oil refineries was accompanied by the construction of pipelines linking coastal supply points with inland markets.
Development of synthetic fuels
The South African Government established fuels company Sasol in 1950, to develop the production of synthetic fuels from domestic coal. Its first plant at Sasolburg, in the Free State began producing synthetic fuels in 1955. During the 1970s and early 1980s, Sasol expanded its coal-to-liquids industry with the construction of the Sasol Two and Sasol Three complexes in Secunda, in Mpumalanga, substantially increasing domestic synthetic fuel production.
Apartheid-era sanctions
International pressure against South Africa's apartheid government increasingly affected the petroleum industry during the 1970s. The United Nations imposed mandatory crude oil sanctions on South Africa in 1977, reinforcing the government's efforts to develop domestic sources of liquid fuels and strategic petroleum stocks. The Central Energy Fund was established that same year, incorporating the Strategic Fuel Fund, while Sasol expanded its synthetic fuel production at Secunda. The Mossgas gas-to-liquids plant at Mossel Bay began production in 1992, shortly before the United Nations oil sanctions were lifted in 1993.
Post-apartheid restructuring
The end of apartheid and the lifting of international sanctions in the early 1990s led to the reintegration of South Africa's petroleum industry into international markets, and a restructuring of the national government's role in the sector. The government began reforming the upstream regulatory system, while former state-owned oil and gas exploration company Soekor's regulatory functions were separated.
In 1999, the Petroleum Agency of South Africa (PASA) was established, and made responsible for the licensing and regulation of petroleum exploration and production.
In 2002, Soekor, Mossgas, and parts of the Strategic Fuel Fund were merged to form a new state-owned petroleum company, PetroSA. This brought the national government's commercial petroleum activities together into an integrated company covering the petroleum value chain.
Recent developments
From the late 2010s onward, South Africa's conventional refining capacity began to decrease, as ageing facilities faced operational, financial, and feedstock challenges. PetroSA's Mossel Bay gas-to-liquids plant was placed on maintenance in 2020 because of declining gas feedstock. The Engen refinery was shut down in December 2020. The SAPREF Refinery paused refining operations in 2022. These closures significantly reduced domestic refining capacity and increased the industry's dependence on imported refined petroleum products.
In 2025, the newly established South African National Petroleum Company (SANPC) announced plans to rebuild the former SAPREF Refinery in Durban, and to reinstate PetroSA's gas-to-liquids refinery in Mossel Bay. The SANPC stated that the former SAPREF site could eventually be rebuilt with a capacity of more than 600,000 barrels per day, while its turnaround plan identified the Mossel Bay GTL Refinery as a priority project for reinstatement.
In March 2026, the South African Government reported progress towards the restoration of the former SAPREF site, while PetroSA issued a tender for preparation and planning services for the reinstatement of the Mossel Bay GTL Refinery. In September that same year, the Central Energy Fund outlined a three-phase plan for the former SAPREF site, beginning with the use of its existing infrastructure for imported petroleum products. Thereafter, a goal of new refining capacity of about 400,000 barrels per day was set, with a potential longer term capacity of up to 650,000 barrels per day.
Upstream industry
Crude oil production
South Africa has historically produced only small quantities of crude oil and remains heavily dependent on imports. Domestic crude oil production has been concentrated in the offshore fields of the Bredasdorp Basin, and has decreased substantially over the years. The country currently has no significant commercial crude oil production, although offshore exploration continues in the search for potentially commercial oil and gas resources.
Offshore exploration
South Africa's offshore exploration industry has expanded in recent years, particularly following major oil discoveries in Namibia's Orange Basin, which extends into South African waters. Exploration is focused on several deep water areas, including the Orange Basin off the west coast and the Outeniqua Basin off the southern coast.
Companies including Total, Shell, and their partners hold interests in several offshore blocks, and have proposed exploration drilling campaigns. Total has proposed drilling up to seven exploration and appraisal wells in its Deep Western Orange Basin block, while Shell has received authorization to drill exploration wells in the Northern Cape Ultra Deep block.
Refining
Crude-oil refineries
South Africa currently has two operational crude oil refineries; the Astron Energy Refinery in Cape Town, with a capacity of 100,000 barrels per day, and the Natref Refinery in Sasolburg, Free State, with a capacity of 108,000 barrels per day. This makes for a combined capacity of 208,000 barrels per day. Both refineries rely on imported crude oil and produce petroleum products including petrol, diesel, jet fuel, and LPG.
Synthetic fuel production
South African petroleum company Sasol operates a large coal-to-liquids facility in Secunda, Free State, where coal is converted into synthetic fuels and other products. The Secunda complex has a synthetic fuel production capacity equivalent to approximately 150,000 barrels of oil per day, and produces products including petrol, diesel, jet fuel, LPG, and other liquid fuels.
Refinery closures and redevelopments
South Africa's crude oil refining capacity has decreased substantially since the early 2020s, following the closure of several refineries. The SAPREF Refinery in Durban ceased operations in 2022, while the Engen Refinery in Durban, and PetroSA's Mossel Bay gas-to-liquids refinery, also subsequently ceased production. The closures increased the country's reliance on imported refined petroleum products.
However, the Engen Refinery is being converted into a fuel storage and import terminal, and the other two closed refineries have plans to reopen.
The state-owned Central Energy Fund (CEF) acquired the former SAPREF Refinery site and assets in December 2024, and has set out a three-phase redevelopment plan to restart refining operations there. The second phase would rebuild refining capacity to about 400,000 barrels per day, potentially increasing to 650,000 barrels per day in the third phase. The project is still pending relevant investment and approvals.
The national government and CEF have stated they support plans to reopen the PetroSA/Mossel Bay GTL refinery, and the SANPC has said that doing so is a priority project. A 2026 PetroSA tender was issued for the GTL Refinery Reinstatement Project: Preparation and Planning Services.
Petroleum products
The South African petroleum industry produces, imports, distributes, and markets a range of refined and synthetic petroleum products. These include petrol, diesel, jet fuel, liquefied petroleum gas (LPG), fuel oil, marine fuels, and bitumen. Domestic production is supplemented by imports to meet demand. In 2023, approximately 25% of petroleum products required in South Africa were produced domestically, while 64% were imported, and 11% were exported.
Gasoline is primarily used as a road transport fuel for passenger cars, motorcycles, and light commercial vehicles. South Africa produces gasoline from crude oil refining at the Astron Energy Refinery and Natref Refinery, as well as synthetic fuel components produced by Sasol at its Secunda facility. Imported gasoline is used to supplement domestic production.
Diesel is used extensively in road freight, mining, agriculture, construction, rail transport, and electricity generation. It is produced locally from crude oil at the Astron Energy and Natref refineries, and synthetically by Sasol, but is also the largest imported petroleum product. In the third quarter of 2025, diesel accounted for 65% of refined petroleum product imports, equivalent to approximately 3.3 billion liters.
Jet fuel is used primarily by the aviation industry. Jet A-1 is manufactured domestically at the Astron Energy and Natref refineries, while additional supplies are imported to meet demand at South African airports.
Liquefied petroleum gas (LPG), consisting primarily of propane and butane, is used for industrial applications as well as for cooking and heating in some households. It is produced as a refinery product and through Sasol's synthetic fuels operations, but South Africa also imports LPG to supplement domestic supply. LPG accounted for 8% of refined petroleum product imports in Q3 2025, at approximately 411 million liters.