Our Viewpoint | Fuel price hikes and energy security
"South Africa must continue pursuing cleaner energy sources and reducing emissions. However, it must do so pragmatically."
The disruption caused by rising fuel prices across various sectors of the economy should serve as a wake-up call for South Africa to rethink how it secures its energy future in an increasingly volatile world.
Like many developing nations, South Africa remains heavily reliant on fossil fuels to power its economy, transport goods and sustain daily life. Unlike wealthier countries with stronger economies, South Africa does not have the financial resources to rapidly transition away from traditional energy sources.
The shift towards cleaner and renewable energy remains dependent on international green funding and investment support. This reality leaves the country particularly vulnerable when global oil markets are disrupted by conflict, geopolitical tensions or supply shortages.
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As international prices rise, local motorists, businesses and households inevitably feel the effects. Yet South Africa possesses a strategic advantage that is often overlooked.
Through Sasol’s coal-toliquid fuel technology, developed during the apartheid era to shield the country from international sanctions, South Africa retains a degree of energy resilience that many nations lack.
The current uncertainty in global fuel markets has not resulted in fuel shortages at South African filling stations. Nor have there been kilometre-long queues or widespread disruptions to the supply of essential goods.
Sasol’s production capacity has helped cushion the country from some of the impact of international supply shocks. Some may regard any discussion involving fossil fuels as politically unfashionable in an era dominated by climate concerns.
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However, countries must work with the technologies and resources available to them while balancing economic development, food security and employment needs. This does not mean abandoning renewable energy ambitions.
South Africa must continue pursuing cleaner energy sources and reducing emissions. However, it must do so pragmatically. In an increasingly uncertain and fragmented world, government should consider expanding strategic fuel reserves, increasing storage capacity and strengthening domestic fuel security.
Recent fuel price shocks have demonstrated that while the long-term future may be green, energy security remains essential to keeping the economy running and ensuring food reaches consumers.
