Iran has extended an offer to supply crude oil to South Africa, a proposal communicated to South African authorities in the department of mineral resources & energy in April, according to people familiar with the matter.
Pretoria has given no indication it intends to accept, with mineral & petroleum resources minister Gwede Mantashe declining to comment.
The government has — since the start of the conflict between the US, Israel and Iran in February — maintained that the country’s fuel supply is stable and sufficiently diversified to meet demand.
The country has, however, with other nations, increased the fuel price since April 1 due to supply disruptions along the Strait of Hormuz. Consumers have been cushioned since then with a fuel levy reprieve of R3.
The offer from Tehran also comes against the backdrop of ongoing US sanctions targeting Iran’s oil exports, which complicate trade and financing for potential buyers.
The restrictions, alongside broader market disruptions linked to the Iran conflict, have reinforced Pretoria’s preference to diversify South Africa’s energy supply sources to strengthen energy security and reduce exposure to global price volatility.
This includes engagements with Russia, Middle Eastern and African producers.
“Iran is ready, should there be any request from any friendly country, including South Africa, regarding the purchase of energy, to give it consideration and respond positively,” a representative from the Iranian embassy said.
South Africa relies on a broad mix of crude and refined fuel suppliers, with African producers Nigeria and Angola among its primary sources.
That diversity has been a deliberate feature of the country’s energy strategy, reducing exposure to supply shocks tied to any single producer or region.
The US sanctions regime targeting Iran’s oil sector presents a big practical obstacle to any trade arrangement. American restrictions on Iranian crude exports expose potential buyers to secondary sanctions, complicating the financing and logistics of such transactions.
For South Africa, which maintains trade and financial relationships with the US, the compliance risks are considerable.
Iran has in recent years sought to expand its oil relationships across Africa and Asia as Western pressure has intensified, finding willing buyers in China and, to a lesser degree, other emerging markets.
Mantashe previously told parliament’s portfolio committee on mineral & petroleum resources that South Africa largely relies on the Strait of Hormuz for processed products, and the government aims to supplement the 60% finished product supply domestically through the Natref Refinery and a Cape Town refinery.
“There’s no shortage of petrol, oil or diesel in the country. It is just expensive. That is the function of the price,” he said.
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