South Africa’s refinery shutdowns cost the nation $4.7 billion in oil imports

A recent note from the South African Reserve Bank estimates that the shutdown of multiple refineries has increased the nation’s oil import expenses by $4.7 billion. Over the last ten years, South Africa’s refining capacity has fallen by about 50%, forcing reliance on imported refined fuel for more than half of its consumption. The government has announced plans to triple refining capacity to reduce vulnerability to global price spikes, especially after the Iran war drove oil prices higher. Regional players such as Aliko Dangote are also pursuing new refinery projects, like a planned plant in Kenya.