South African energy and chemicals producer Sasol has revised its 2026 fuel sales guidance upwards after successfully completing repairs and regaining full operational control of the Natref crude oil refinery, which was severely damaged by a fire in early 2025.
The restoration of Natref, a key inland refining asset, has significantly improved output and strengthened fuel production after a prolonged disruption.
A fire at Sasol’s Natref refinery on January 4 last year left South Africa with only one operational crude-processing facility, increasing reliance on fuel imports. Natref, the country’s sole inland refinery, processed 108,000 barrels per day – about 30% of national capacity and its outage raised concerns over jet fuel supply to Johannesburg’s OR Tambo International Airport.
Natref Restoration Drives Sasol’s Strategic Recovery
The increased fuel sales guidance comes amid broader financial pressures. In its recent interim results, Sasol reported a nearly 95% year-on-year drop in net income, largely due to weaker oil prices and impairment charges, despite higher output.
CEO Simon Baloyi highlighted that strategic actions, such as completing Natref repairs and maintaining disciplined cost management, are central to strengthening Sasol’s core business. The company is also advancing renewable energy initiatives and maintaining an active hedging programme to mitigate exposure to price volatility, reflecting a broader effort to build resilience in volatile global energy markets.
The turnaround at Natref not only restores a critical refining asset but also allows Sasol to raise expectations for fuel sales in 2026, signalling renewed stability in South Africa’s inland fuel supply.
While profitability remains under pressure, the combination of restored capacity, disciplined cost control, and strategic planning positions Sasol to better navigate both domestic and global energy challenges in the year ahead.
