Correct!
They nearly got away with it! No-one noticed that the SFF sold off the strategic reserve for a pittance in December, they only got $28 per barrel when the market price was over $40! In fact, in March the Minister told Parliament that there was still plenty of fuel in storage for a rainy day. Unfortunately, the truth did come out, but only two years later. The good news is that while everyone was sure the acting CEO would get jailed for that one (especially the board!), they aren't just walking free. In 2024 they were appointed head of the South African National Petroleum Company (SANPC). Something to learn from?
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The international norm is to hold 90 days’ worth of oil supply in reserve, to alleviate any disruptions to the global supply chain. In South Africa’s case, this would equate to around 25m barrels, although local laws only mandate that the reserve holds 21 days’ worth (around 10m barrels)[19].
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