Incorrect!
Well aren’t you just an angel? In real life, the acting CEO of SFF flogged off the strategic reserve and didn’t bother to refill the tanks - effectively banking the cash but letting the reserve run dry. And to top it off, they only made $28 per barrel when the open market price was over $40. No-one seemed to notice for a while, as that 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 SFF 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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