South Africa Petroleum Market Size
| Study Period | 2019-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 8.30 Billion |
| Market Size (2029) | USD 8.83 Billion |
| CAGR (2024 - 2029) | 1.23 % |
| Market Concentration | Medium |
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*Disclaimer: Major Players sorted in no particular order |
South Africa Petroleum Market Analysis
The South Africa Refined Petroleum Products Market size is estimated at USD 8.30 billion in 2024, and is expected to reach USD 8.83 billion by 2029, growing at a CAGR of 1.23% during the forecast period (2024-2029).
- Over the medium term, the increasing infrastructure development activities in the country, the growing population, and the increasing consumption of petrol products are expected to drive the market during the forecasted period.
- On the other hand, an increasing fluctuation in crude oil prices is expected to hinder the market's growth during the forecasted period.
- Nevertheless, the increasing investments in the petrochemical market are expected to create huge opportunities for the refined petroleum products market.
South Africa Petroleum Market Trends
Automotive Gas Oil (AGO) to Dominate the Market
- Automotive Gas Oil (AGO), commonly known as diesel fuel, is expected to dominate the South African refined petroleum products market.
- Automotive Gas Oil is widely used in various sectors, including transportation, mining, agriculture, and construction. South Africa's industrial and transportation sectors heavily rely on diesel-powered vehicles and equipment, making Automotive Gas Oil a crucial fuel for these industries.
- Moreover, South Africa has a significant demand for heavy-duty vehicles such as trucks, buses, and mining equipment. These vehicles require diesel fuel due to their higher energy density and better torque characteristics, making AGO the fuel of choice for such applications.
- For instance, according to the International Organization of Motor Vehicle Manufacturers, the sales of commercial vehicles in South Africa grew by more than 13% between 2021 and 2022. Signifying increased purchases of commercial vehicles, consequently increasing the demand for Automotive Gas Oil.
- Furthermore, in May 2023, according to the announcement made by the Department of Energy, there was an expected decrease of approximately 80 cents per liter in petrol prices for the upcoming time. Similarly, diesel prices are anticipated to decrease by around 90 cents per liter. The primary factor behind this price relief is the decrease in the cost of oil, which has led to a reduction in international product prices. As a result, there is an excess recovery of between USD 0.069 and USD 0.075 per liter.
- Therefore, as per the points mentioned above, the automotive gas oil segment is expected to dominate the market during the forecasted period.
Increasing Demand for Petroleum Products to Drive the Market
- As the economy of the country is growing, there is a rise in industrial activities, construction projects, and transportation needs. These sectors heavily rely on refined petroleum products like gasoline, diesel, and jet fuel, driving the demand for such products.
- South Africa's population is steadily increasing, increasing energy consumption and transportation requirements. Urbanization further contributes to the demand for refined petroleum products as cities expand and transportation infrastructure develops.
- Moreover, the transportation sector, including private vehicles, commercial fleets, and public transportation, is a major consumer of refined petroleum products. As the number of vehicles on the road increases, so does the demand for gasoline and diesel.
- Furthermore, refined petroleum products are essential for various industries, including manufacturing, mining, agriculture, and construction. These sectors rely on petroleum products for fueling machinery and equipment, creating a consistent demand for such products.
- For instance, according to the Organization for Economic Co-operation and Development, the average South African manufacturing output in 2022 was around 92.46 compared to 87.44 in 2020. Signifying the recovery of the market and steady growth.
- Various manufacturing sites are also inaugurated in the country; for instance, in October 2022, ALPLA Group inaugurated a cutting-edge manufacturing facility in Lanseria, located near Johannesburg. This new headquarters for Sub-Saharan Africa consolidates five former South African sites into a single location, bringing together all ALPLA technologies, processes, and materials. The Lanseria plant serves as a hub for the company's regional operations. Also, ALPLA will launch its first apprenticeship program in Africa in 2023.
- Therefore, as per the above points, the increasing demand for refined petroleum products is expected to drive the market during the forecasted period.
South Africa Petroleum Industry Overview
South Africa's refined petroleum products market is semi-fragmented. Some of the major players in the market (in no particular order) include TotalEnergies SE, ENGEN PETROLEUM LTD, PetroSA, Shell PLC, and Sasol Limited., among others.
South Africa Petroleum Market Leaders
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ENGEN PETROLEUM LTD
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PetroSA
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Sasol Limited
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TotalEnergies SE
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Shell Plc
*Disclaimer: Major Players sorted in no particular order
South Africa Petroleum Market News
- February 2023: Astron Energy, a subsidiary of Glencore, has announced plans to reopen the Cape Town oil refinery based on a compelling commercial rationale. The company is fully dedicated to restarting the refinery and is progressing with the required work to achieve this objective.
- November 2022: the Mineral Resources and Energy Ministry of South Africa reached out to Saudi Aramco to explore the possibility of rekindling their interest in constructing a refinery within the country. The proposal entails the establishment of a new crude oil refinery on the East Coast, with a projected capacity of 300,000 barrels per day. The targeted timeline for the refinery to become operational is by 2028. The estimated cost for this venture is approximately USD 10 billion.
South Africa Petroleum Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Refined Petroleum Products Market in USD, till 2029
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.1.1 Increasing Consumption Of Petroleum Products
- 4.5.2 Restraints
- 4.5.2.1 Fluctuating Crude Oil Prices
- 4.5.2.2 Adoption of Cleaner Alternatives In Transportation
- 4.6 Supply Chain Analysis
- 4.7 PESTLE Analysis
5. MARKET SEGMENTATION
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5.1 Refined Products
- 5.1.1 Illuminating Paraffin
- 5.1.2 Fuel Oil
- 5.1.3 Automotive Gas Oil (AGO)/Diesel
- 5.1.4 Premium Motor Spirit (PMS)
- 5.1.5 Liquefied Petroleum Gas (LPG)
- 5.1.6 Other Refined Products
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 TotalEnergies SE
- 6.3.2 ENGEN PETROLEUM LTD.
- 6.3.3 PetroSA
- 6.3.4 Shell PLC
- 6.3.5 Sasol Limited
- 6.3.6 Astron Energy (Pty) Ltd.
- 6.3.7 BP Southern Africa (Pty) Ltd.
- 6.3.8 Chevron Corporation
- *List Not Exhaustive
- 6.4 Market Ranking/Share Analysis**
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Petrochemical Industry Development
South Africa Petroleum Industry Segmentation
Refined petroleum products are fuels and other products derived from crude oil through various refining processes. These products undergo refining and treatment to remove impurities and obtain specific properties suitable for different applications.
South Africa's refined petroleum products market is segmented by refined products. By refined products, the market is segmented into illuminating paraffin, fuel oil, automotive gas oil (AGO), premium motor spirit (PMS), liquefied petroleum gas (LPG), and other refined products.
The report offers the market size and forecasts for the South African refined petroleum products market in revenue (USD) for all the above segments.
| Refined Products | Illuminating Paraffin |
| Fuel Oil | |
| Automotive Gas Oil (AGO)/Diesel | |
| Premium Motor Spirit (PMS) | |
| Liquefied Petroleum Gas (LPG) | |
| Other Refined Products |
South Africa Petroleum Market Research Faqs
How big is the South Africa Petroleum Market?
The South Africa Petroleum Market size is expected to reach USD 8.30 billion in 2024 and grow at a CAGR of 1.23% to reach USD 8.83 billion by 2029.
What is the current South Africa Petroleum Market size?
In 2024, the South Africa Petroleum Market size is expected to reach USD 8.30 billion.
Who are the key players in South Africa Petroleum Market?
ENGEN PETROLEUM LTD, PetroSA, Sasol Limited, TotalEnergies SE and Shell Plc are the major companies operating in the South Africa Petroleum Market.
What years does this South Africa Petroleum Market cover, and what was the market size in 2023?
In 2023, the South Africa Petroleum Market size was estimated at USD 8.20 billion. The report covers the South Africa Petroleum Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Africa Petroleum Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
How is technology influencing the South Africa Refined Petroleum Products Market?
Technological advancements in refining processes, distribution logistics, and alternative fuels are shaping the South Africa Refined Petroleum Products Market efficiency, sustainability practices, and consumer choices.
South Africa Petroleum Industry Report
The South Africa refined petroleum products market is a pivotal element of the country's energy sector, significantly fueling industries like transportation, manufacturing, and agriculture. This market, crucial for the production, distribution, and consumption of essential fuels such as gasoline, diesel, jet fuel, and lubricants, undergoes processes like distillation and cracking. Dominated by automotive gas oil due to its extensive use in heavy industries and transportation, the market is propelled by urbanization, economic development, and increasing infrastructure activities, enhancing demand within the fuel industry in South Africa. Challenges such as fluctuating crude oil prices present restraints, yet opportunities for growth lie in technological advancements and investments in the petrochemical sector, aiming to diversify product offerings and penetrate untapped markets. The competitive landscape is vibrant, highlighted by the top 10 petroleum companies in South Africa, all focused on innovation and expansion. According to Mordor Intelligence™ Industry Reports, the market's future appears promising with expected continuous growth driven by industrial activities and steady demand for petroleum products. For detailed statistics, market share, size, and revenue growth insights, a comprehensive market forecast and historical overview are available for download as a free report PDF from Mordor Intelligence™.
