Government ‘closely watching’ the oil price and jet fuel situation – Creecy

2026-03-06 - 09:03

Transport Minister Barbara Creecy says SA currently has “stability” on refined fuel and jet fuel supplies following the Middle East conflict, which has forced the closure of the Strait of Hormuz – a strategic sea channel for the Gulf’s oil industry. “We are closely watching the situation, the oil price and supplies, including jet fuel,” she told Moneyweb on the sidelines of the Board of Airline Representatives of South Africa’s (Barsa) Aviation Conference at the Capital Zimbali Resort on the KwaZulu-Natal North Coast on Thursday. The conflict, sparked by the US-Israeli airstrikes on Iran that killed its leader on the weekend, has rocked world markets and seen the Brent crude price spike to almost $85 a barrel. Several Middle Eastern states, including aviation hubs Dubai and Qatar, have seen retaliatory strikes by Iran, which led to a shutdown of airspace and travel chaos in the region this week, with 15 000 flight cancellations. ALSO READ: Iran says it will fight the war alone Double whammy likely to hit petrol pumps In SA, the rand’s significant weakening against the dollar since the strikes is expected to result in a double-whammy blow at the pumps in April, with petrol and diesel set to rocket between R2 and R5 a litre based on current calculations by Stanlib. “We are concerned about the situation in the Middle East and the closure of the Strait of Hormuz, which could potentially impact refined fuel supplies to SA and has seen a jump in global oil prices,” said Creecy. “A lot depends on how long the conflict lasts. SA is quite dependent on refined fuel ... I have spoken to the Minister of Mineral and Petroleum Resources, Gwede Mantashe, and we are monitoring the situation. But we have stability at the moment [in supplies],” she added. A source at the Department of Mineral and Petroleum Resources told Moneyweb “there are no jet fuel concerns in the country” currently. ALSO READ: April fuel prices set to rocket He said it is difficult to tell how long it would be before the Middle East situation presents a challenge in terms of oil supplies locally. “The department together with the oil companies are monitoring the situation daily and whenever there are developments.” Impact on Africa Mantashe weighed in on the conflict and its impact on Africa during an address in Zululand on Thursday. “We gather at a time of heightened geopolitical tensions, driven by the global scramble for greater access to and control of natural resources, including oil and gas. History reminds us that resource-endowed nations often bear the brunt of such tensions. Africa is no exception,” he said. We gather at a time of heightened geopolitical tensions, driven by the global scramble for greater access to & control of natural resources, including oil & gas. History reminds us that resource-endowed nations often bear the brunt of such tensions. Africa is no exception. pic.twitter.com/RpM8EC5ya6 – Gwede Mantashe (@GwedeMantashe1) March 5, 2026 On the aviation industry crisis in the Gulf, Creecy commented: “The impact of the conflict is very intense at the moment, with South African travellers facing major difficulties getting home via the air hubs in the Middle East.” She said the first few flights have commenced with limited airspace opening up. “Two flights from Dubai came today [Thursday] and we are expecting two more,” she added. A stark reminder of the situation can be seen at King Shaka International Airport in Durban, where an Emirates jumbo is currently parked at the Dube TradePort Cargo Terminal, after outbound flights were cancelled this week. At bigger airports in Joburg and Cape Town travellers are likely to see several more aircraft from Gulf regional airlines standing on the tarmac. This article was republished from Moneyweb. Read the original here. READ NEXT: Will Middle East conflict force Reserve Bank to halt interest rate cuts?