South Africa will hold off on selling more of its strategic crude oil reserves until global oil prices climb to about $100 per barrel, a senior energy official told, aiming to balance revenue generation with reserve sustainability.

The Chevron Oil Refinery is seen in Cape Town, South Africa, June 30, 2016.

In 2022, the government cut a fuel levy to shield consumers from high petrol and diesel prices, planning to recover the funds through crude oil sales. Brent crude averaged $99 per barrel that year, but prices have recently fallen to around $66 per barrel as of Wednesday.

Godfrey Moagi, CEO of the South African National Petroleum Company, said: “The oil price is too low, so if you sell today you are going to empty the tanks. So we have to sell at the right level to make sure we still have strategic stocks.” He further noted: “We are looking to sell at around $100 a barrel.”

The National Treasury expects to raise 4 billion rand ($223.2 million) from oil sales by March 2026, though Moagi’s comments indicate this depends on a significant price increase. In the 2023/24 fiscal year, when Brent neared $100 per barrel, 2 billion rand was transferred to the government.

Managed by the Strategic Fuel Fund Association, South Africa’s reserves are estimated at 7.7 million barrels. Since 2022, 2 million barrels have been sold to Sasol, a local petrochemical firm, and 280,000 barrels to TotalEnergies’ South African unit.