00:05South Africa imports 90% of its crude oil and over 60% of refined petroleum products.
00:11While the crude oil comes from Nigeria and Angola, the petroleum products are imported from Saudi Arabia.
00:18But with little movement through the Strait of Hormuz, those shipments have stalled.
00:23We rely on imports. Diversifying helped us because we are not 100% reliant on the imports coming from the
00:33Gulf and the United States.
00:35South Africa says it has enough fuel and is at no risk of supply shortages in the immediate term.
00:40But it is also looking at bringing on more refining capacity to ensure sufficient supply.
00:46One of the very unfortunate developments in South Africa over the last few years has been that four out of
00:54six fuel refineries have shut down for a variety of reasons,
01:00but linked largely to the de-industrialization of the South African economy.
01:05The Asrond refinery in Cape Town, one of just two oil refineries that are operational in South Africa,
01:11is expected to provide some relief once it completes its scheduled maintenance and upgrades.
01:18The refinery produces up to 100,000 barrels of refined fuel products per day, including petrol, diesel and jet fuel,
01:26making it essential for domestic fuel supply.
01:29It will offset some of the pressures that we are getting.
01:34So Asrond has been mitigating through imports as well.
01:40So immediately it comes online in April.
01:44That will stop from their side and they will start refining what they are getting.
01:50That will really lower down the import percentage that our country is now importing.
02:00However, while South Africa moves to manage its fuel security, it won't be able to control global oil shocks.
02:07When it comes to price, unfortunately, the price of fuel is determined internationally.
02:14In South Africa, we kind of fit more or less in the middle range.
02:19Our fuel prices are not the highest in the world, but they are not the lowest in the world.
02:24Part of that is due to the fact that we have substantial taxes on fuel.
02:29While Asrond's return from maintenance may stabilize supply in the short term, South Africa remains exposed to geopolitical tensions, which
02:39continue to shape the outlook.
02:41In South Africa, they are more than usual.
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